Nokia, Siemens deal puts heat on Motorola

More industry commentray regarding the Nokia (NOK) and Siemens (SI) joint venture. The Daily Herald focused on what the deal could mean to other players such as Motorola (MOT), Tellabs (TLAB), Lucent Technologies (LU), Ericsson (ERICY) and Nortel Networks (NT).

Carmi Levy at Info-Tech Research Group said, "The Nokia-Siemens deal is timed well because it positions them for continued market growth - growth that is driven by accelerating handset demand, penetration into previously under-exploited markets and continued subscription price erosion. The vendors who are left standing as the industry continues to increase its scale and pace will be those who play the game most efficiently."

Albert Lin at American Technology Research added, "Siemens would have been a good fit for several companies including Motorola. Too bad it's not likely an option now, although Nokia and Siemens could make another acquisition, it's not likely to be Motorola, but rather a more wireline focused player."

Lin believed "Motorola and other companies need to scrutinize their operations, cut costs and boost research and development." He said, "After a few quarters, I expect Motorola will have to address their infrastructure scale challenges now that so many competitors are increasing in size."

Levy at Info-Tech Research Group remarked "No integration of this scale is ever accomplished without some pain. If Motorola can take advantage of this, it will be able to blunt much of the longer term benefits incurred by having to compete against a larger, highly efficient set of competitors."