EU approves merger of Nokia and Siemens mobile network units

EU regulators waved through Nokia and Siemens plans to combine their mobile network operations in a bid to compete with market leader Ericsson, an Associated Press report said.

The Associated Press report said the European Commission said the market would remain competitive despite the 'considerable market share' the new company would have in the mobile network equipment sector.

'A sufficient number of credible competitors would remain in the market. Customers, mostly network operators, would still have alternative suppliers,' it said.

Regulators saw no problems in other areas Siemens or Nokia were involved in, such as fixed-line telecommunications network equipment and related mobile and fixed-line services.

The new unit, to be known as Nokia Siemens Networks, is a 50-50 joint venture between the two. Combining Nokia's network business group and Siemens' carrier-related operations should create a business with annual revenues of 15.8 billion euros ($20.2 billion), the Associated Press report said.