Nokia Siemens Looks to U.S. for Growth Opportunities as Chinese Peers Shunned (NOK) (SI)
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Nokia Siemens Networks -- a joint venture of Nokia Oyj (NYSE: NOK) and Siemens AG (NYSE: SI) -- is looking to make a stronger impression in the U.S., a market that has left some Chinese rivals out in the cold.
According to CEO Rajeev Suri, Nokia Siemens is forgoing deals in Africa and the Middle East, most of which would be less lucrative anyway, in order to focus more on work with U.S. telecoms like AT&T (NYSE: T), Verizon (NYSE :VZ), and others.
Competition from the likes of Huawei and ZTE Corp has been fierce in recent years, though U.S. company execs are pushing for a move away from the lower-cost companies. Mainly, the aversion stems from Chinese intelligence being able to "tamper" with U.S. telecom networks, according to the U.S. House of Representatives Intelligence Committee.
In addition, continuing losses at Alcatel-Lucent (NYSE: ALU) have the French company focusing as much on cost cutting as growing its business.
Nokia Siemens has been vying with Huawei for second-spot behind Ericsson (Nasdaq: ERIC) for largest global phone-equipment maker.
Both Nokia and Siemens have worked toward making the joint venture a stand-alone entity. Talks with private equity firms were abandoned in July 2011, with no suitable offers on the table at the time. With telecoms like AT&T looking to expand networks and provide faster wireless service for customers moving forward (AT&T itself recently announced a $14 billion CapEx plan for the next three years), Nokia Siemens might be poised to gain notable market share moving forward.
According to CEO Rajeev Suri, Nokia Siemens is forgoing deals in Africa and the Middle East, most of which would be less lucrative anyway, in order to focus more on work with U.S. telecoms like AT&T (NYSE: T), Verizon (NYSE :VZ), and others.
Competition from the likes of Huawei and ZTE Corp has been fierce in recent years, though U.S. company execs are pushing for a move away from the lower-cost companies. Mainly, the aversion stems from Chinese intelligence being able to "tamper" with U.S. telecom networks, according to the U.S. House of Representatives Intelligence Committee.
In addition, continuing losses at Alcatel-Lucent (NYSE: ALU) have the French company focusing as much on cost cutting as growing its business.
Nokia Siemens has been vying with Huawei for second-spot behind Ericsson (Nasdaq: ERIC) for largest global phone-equipment maker.
Both Nokia and Siemens have worked toward making the joint venture a stand-alone entity. Talks with private equity firms were abandoned in July 2011, with no suitable offers on the table at the time. With telecoms like AT&T looking to expand networks and provide faster wireless service for customers moving forward (AT&T itself recently announced a $14 billion CapEx plan for the next three years), Nokia Siemens might be poised to gain notable market share moving forward.
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