The CEO of European vendor NSN expects the number of global network manufacturers will decline in the long-term from five to three, reported Finnish paper Helsingin Sanomat.
The market only has room for three big internationally-focused telecoms…
The CEO of European vendor NSN expects the number of global network manufacturers will decline in the long-term from five to three, reported Finnish paper Helsingin Sanomat.
The market only has room for three big internationally-focused telecoms equipment manufacturers, Rajeev Suri is cited as saying.
Currently joining NSN in the global network vendor market are China’s Huawei and ZTE, Sweden’s Ericsson and Franco-American Alcatel-Lucent.
An eventual decline in the number of large global vendors is attributed by the report to strong competition, and operators increasingly outsourcing network maintenance to concentrate on consumer services.
NSN’s 50:50 owners, Finland’s Nokia and Germany’s Siemens, are reportedly talking to PE firms Blackstone and Gores Group about a 30% stake in the JV.
Although a spokesman for the vendor confirmed it had “received interest from private equity firms”, he insisted “any reports on the plans are still speculation at this stage”.
PE firms Bain Capital, TPG Capital and Silver Lake have also been tipped as likely suitors for NSN, which has mandated Morgan Stanley to advise it on a sale.
