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This news about Nokia and Siemens merging their telecom carrier equipment businesses to form a new $30 billion joint venture company, made me think about two things: the low cost competition from China has everyone spooked, and more importantly, where does this leave Juniper Networks, which is dealing with what could be a problematic options-scandal related inquiry.
Siemens’ has been a key Juniper partner and reseller, just like Ericsson. Now if the new Nokia+Siemens is going to compete with Ericsson, then Juniper will be selling to both. It is also reselling its routers via Alcatel-Lucent combined company (though who knows what happens there.) Interesting turn of events: on one hand it could turn into a massive opportunity for Juniper, or well…
The news of the announcement did not surprise me at all. Talking about the low cost competition – Europe telecom vendors have been more severely impacted by the rise of Huawei and ZTE, so we in the United States are not realizing and panicking over these guys… yet.