[May 2, 2002]

Siemens, Unisphere Networks Combine Next-Generation Voice Businesses

Siemens Information and Communication Networks (IC Networks) and Unisphere Networks, Inc. announced the signing of a definitive agreement that will combine Siemens' SURPASS convergence technology with Unisphere's next-generation voice business to create a world leader in packet voice networks. Under the terms of the agreement, Unisphere will spin off its next-generation voice business, with operations in Westford, Mass. and Boca Raton, Fla., to be followed immediately by the combination of this business with Siemens. The transaction is expected to be completed in the second quarter of calendar 2002.

Combining the voice technology and product portfolios of the two companies for building the next-generation network will further strengthen Siemens` position to drive the evolution of packet voice networks. Unisphere's next generation voice products - the SMX-2100 Media Gateway and the SRX-3000 Softswitch - will be added to the Siemens Surpass convergence portfolio, creating a comprehensive range of products designed to meet the voice convergence needs of carriers and service providers. The integration of the Unisphere voice products within the Siemens IC Networks is in direct response to customer requirements for a single-source provider for voice solutions for next-generation networks. No other vendor can compare with the range of such offerings now available through Siemens IC Networks.

"Success in today's voice convergence business increasingly demands a comprehensive portfolio of technology and products," said Christof Wahl, president, Wireline Network Communication business division of Siemens IC Networks. "This combination of two highly complementary convergence businesses will create a world leader in packet voice networks, with broad technology capabilities and a complete product offering."

"Siemens views voice convergence as a core competency, with over 57 fixed-network operators worldwide having already ordered Surpass solutions," said Eve Aretakis, who is to be president of the new unit. "With Unisphere's proven track record of product execution and operational excellence, we believe this merger will create a unit that is capable of even greater long-term success."

This enables Siemens also to expand its access to the North American and Japanese telecommunications market. This is a development of considerable strategic value, as the U.S. market for fixed-network infrastructure technology is likely to top out at around EUR 42 billion in 2002, while the Japanese market will reach a volume of some EUR six billion. Both thus representing 45 percent of the world market.

Altogether Siemens is investing around EUR 275 million in this fiscal year alone in the development of Surpass products for communication networks of the next generation.

The agreement allows Unisphere to focus on its award winning IP Routing and Broadband Access product lines. Additionally, global distribution and joint marketing arrangements between Siemens IC Networks and Unisphere will combine Unisphere's routing technologies with Siemens' packet voice infrastructure solutions, allowing service providers to build robust, converged networks designed to meet the high quality standards of the public network.

[ Back To BizWatch Homepage ]