FIPB gives nod to Nokia, Siemens network JV here

NEW DELHI: The foreign investment promotion board (FIPB) has approved merger of telecom network operations of Nokia and Siemens in India. So far, the two have individual approvals to operate in India. This move will pave the way for the two to jointly bid for the $5-billion tender floated by BSNL for 45 million cellular lines.

With this approval, the two multinationals will be allowed to operate as a single entity here. Nokia has a strong mobile equipment segment and Siemens’ core strength lies in the fixed line phone business. Nokia is involved in both handset and network businesses. The network business will involve Siemens and the merged entity will have to hive off the network division of Nokia.

This comes after the announcement by Nokia in June 2006 that it was merging with global networks giant Siemens of Germany. The new entity is now called Nokia Siemens Networks. The 50:50 JV will consist of Nokia’s networks business group and Siemen’s carrier-related operations for fixed as well as mobile networks.

This merger will make the JV company the second-largest in mobile infrastructure in the world and third largest in fixed infrastructure.