Motorola-Siemens In Talks?

3 thoughts on “Motorola-Siemens In Talks?”

  1. To what extent is this driven by VoIP, and to what extent by other, more general (and normal) market conditions? Is any of this likely to advance the deployment of 3G data service, or make it cheaper?

    Thanks,

    Jacob

  2. This is very much driven by general market conditions. With a falling number of operator brands in the world (either through in-market consolidation a la AT&T/BellSouth or through cross-border consolidation a la Telefonica expanding its footprint in other European markets) it is harder and harder for network vendors to make a profit without achieving more scale.

    I doubt that this will have a significant impact on the deployment or cost of 3G services. 3G adoption has to be consumer-led, and I am yet to be convinced that there is all of this pent-up-demand for advanced service x, y or z.

  3. Equipment maker consolidation will never lead to new devices or lower prices. Those things are driven by competition between companies. So, these mergers are bad news for everyone but the shareholders of the merging companies (they are bad news for the employees, because they end up getting laid-off).

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