Tuesday October 23, 07:12 PM
Nokia Siemens in strategic tie-up with Deutsche Telekom
HELSINKI (AFP) - Nokia Siemens Networks (NSN) said Tuesday it has signed a strategic partnership with Deutsche Telekom (Xetra: 555750 - news) as well as two deals worth 450 million euros (317 million dollars) over five years.
NSN, a joint venture between Finland's Nokia (Xetra: 870737 - news) and Germany's Siemens (Xetra: 723610 - news) , said it would take control of Deutsche Telekom unit Vivento Technical Services (VTS) under the strategic partnership with the German firm.
VTS, founded in 2004, builds and maintains fixed-line and mobile networks mainly for Deutsche Telekom but also for Spain's Telefonica (Madrid: TEF.MC - news) and Germany's NetCologne.
"In a very fragmented market consisting of thousands of sub-contractors, cost and resource co-ordination are key factors. VTS offers a promising entry point into the German infrastructure services market which, according to Nokia Siemens Networks internal estimates, is expected to grow annually by around 6 percent, reaching one billion euros by 2010," NSN said in a statement.
The unit, a subsidiary of Vivento, Deutsche Telekom's in-house re-deployment agency, employs 2,000 people and will become a wholly-owned unit of NSN.
The deal is expected to be finalised early next year.
The accord comes at a time when Deutsche Telekom is restructuring due to fierce competition in the domestic market and a flight of customers from its fixed line services.
NSN said of the contracts it has signed with Deutsche Telekom, one relates to managed services and is worth 300 million euros over five years.
An additional contract for next-generation equipment and services is worth up to 150 million euros over the same period, it said.
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