Nokia, Siemens postpone the consolidation plan

The plan to consolidate the telecommunications network service sector between Nokia and Siemens has been delayed because Siemens is currently involved in a corruption investigation.

Accordingly, some of Siemens' former leaders were arrested for being charged with bribery. Among them are a number of unit leaders who will participate in the consolidation process of Siemens.

Nokia said the company is very concerned about Siemens' issue and insists that it will participate in the investigation to make sure no problems exist that hinder the integration process.

Simon Beresford-Wylie - future leader of Nokia Siemens Networks - is holding a Nokia and Siemens mobile phone product.

In the latest announcement Nokia affirmed: " Nokia and Siemens have intended to revise some agreements to allow Siemens to fully implement the investigation process before completing the consolidated plan. The investigation will be used as a "weapon" to prevent any similar problems that may occur in the unified unit later . "

Last June, Nokia and Siemens said the two companies will work together to form a joint venture called Nokia Siemens Networks. This is the unified unit of communication services of Nokia and Siemens.

Nokia and Siemens expect that the new joint venture will quickly become a leader in the field of telecommunications network infrastructure and service business.

It is estimated that by 2010 the consolidated plan will help both Nokia and Siemens save about 1.5 billion euros per year.

" Nokia Siemens Networks joint venture will be an important step to strengthen our position in the market and allow us to provide our customers with the most advanced technology products and services, " Klaus Kleinfeld - Siemens CEO - affirmed.

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