Siemens Expands Business in United States

As part of its restructuring efforts, Siemens has said it will spend $500 million over the next two years on mobile communication efforts in the United States by strengthening existing businesses, entering new markets, investing significantly in building its brand awareness among consumers, and by restructuring. The newly formed Information and Communication Mobile Group consolidates Siemens' entire mobile communications business, including its existing cordless phone and wireless network businesses and mobile phones in the future.

According to Rudi Lamprecht, president, Siemens Information and Communication Mobile, the company plans to take its aggressive play to the United States by following the same business model it has used successfully in Europe.

U.S. Facility
The most significant example of Siemens' aggressive push is the establishment of a U.S.-based wireless technology competency center in San Diego, CA. The new 60,000-square-foot facility will be the home of sales, marketing, and R&D functions of the new mobile phone business, as well as sales and marketing of the wireless infrastructure division. Siemens will expand its R&D capabilities to include focus on TDMA, CDMA, and GSM-1900, as well as third-generation technologies.

By combining its wireless businesses and having a focused approach to the mobile market, the company plans to strengthen its ability to deliver innovative products and solutions for network operators and end users.

The U.S. expansion is supported by ICM's global acquisition and strategic partnership strategy. The recent acquisition of Bosch's mobile communication R&D sector comprises approximately 350 R&D engineers and represents a strategic investment in wireless know-how, which includes dual-band and tri-band (GSM 900, 1800, and 1900) technology. Siemens mobile infrastructure unit will also significantly expand its R&D activities in mobile IP and base stations.

Among strategic partnerships of note are agreements with NeoPoint and Proxim. Siemens owns a stake in NeoPoint and will work with the San Diego-based company to develop smart phones and CDMA-based devices that integrate data, voice, e-mail, and Internet functions.

ICM Divisions
ICM's Communication Devices division consists of Digital Products and Mobile Phones business units, which were formerly part of the now disbanded Information and Communication Products Group. The Mobile Phone business will focus on developing wireless devices to support all North American wireless standards.

The Communication on Air business, which was part of Siemens Information and Communication Networks, covers network technology from base stations to mobile switching systems, up to applications and intelligent networks, as well as General Radio Package Service (GPRS), Enhanced Data Rates for Global Evolution (EDGE), and Universal Mobile Telecommunications Standard (UMTS) technologies. The portfolio also includes mobile Internet solutions, such as Wireless Application Protocol (WAP)-based applications, location service, and payment platforms.

Siemens ICM started operating globally on April 1, 2000, with about 20,000 employees (who were formerly part of the Information and Communication Networks and Products Groups) and a consolidated turnover of $5 billion (in relation to the fiscal year 1998/1999).

Edited by Ellen Jensen