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Author: Dan Bieler
Last Friday, Siemens Com Mobile Networks held an analyst day in Munich regarding the evolution of mobile networks. The Siemens division will be part of Nokia Siemens Networks - assuming the joint-venture receives regulatory approval in October.
Comment: the analyst day took place against the turbulent developments at BenQ (see Euroview Daily 29 October). Considering this context, we found a company that made every impression of being on top of developments and trends in the mobile infrastructure space. We believe that Nokia Siemens Networks has good chances to become a stronger player than the mere sum of assets of Nokia and Siemens would suggest.
The key theme of the analyst day was 'next-generation mobile networks' (NGMN). The movement towards IP-based infrastructure is going to have the same profound implications for the mobile world as it has for the fixed world. Interestingly, Siemens believes that despite the convergence trends, there will be no full convergent network infrastructure. Instead, the fixed and mobile NGNs will be 'linked' by IMS or a similar standard.
As far as the NGMN roll-out is concerned, Siemens sees infrastructure simply as one aspect of the migration process. A successful migration depends on the implementation of NGMN business processes, though. In particular, billing, CRM and content syndication must be adapted to NGN requirements. This observation is crucial as mere access provision is unlikely to provide mobile operators with the necessary revenue base to maintain - let alone to increase - the current revenue and profit base. Applications will be essential to achieve that goal.
Mobile TV was also discussed. Siemens quoted its own surveys, pointing out that mobile TV will have the highest take-up amongst new mobile applications. The company also emphasised that users have mentioned good indoor reception as a key requirement. Siemens focuses primarily on the broadcasting technology DVB-H. Whilst this standard is backed by the major mobile operators, we believe that alternative standards like DMB cannot yet be fully discounted. Given the uncertain additional revenues that might be generated through mobile TV, a scaled-down mobile broadcast technology other than DVB-H might retain a role in the mobile entertainment arena.
The full strategic position and product portfolio of Nokia Siemens Networks will only emerge once the joint-venture starts operating. The earliest day for that is 1 January 2007. However, we have seen many interesting concepts that Siemens will bring to the new entity. The post-Com period is set to be exiting.
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