New culture

It has been one year since Nokia Siemens Networks (NSN) was created in April 2007 after a merger between the network businesses of Nokia and Siemens.

The company is growing steadily in the Chinese market and has established six R&D centers in Beijing, Shanghai, Chengdu, Suzhou, Hangzhou and Shenzhen.

It has also added 1,000 research specialists to enhance its R&D capacity. But it also faces challenges from domestic telecom suppliers including Huawei and Zhongxing.

Zhang Zhiqiang, CEO of NSN for Great China Region, believes 2008 is a smooth year for the global telecom supplier.

Zhang shares NSN's strategy and plans for the new situation with China Business Weekly reporter Zhang Qi in a recent interview.

Q: The telecom industry has restructured from five combined into three. Do you think the restructuring is an opportunity for NSN?

A: It is an opportunity for NSN, and also for all the suppliers. We are very strong on mobile and fixed services. The hot topic will be about how to combine mobile and fixed-line services in the future. NSN is prepared to take the challenge and opportunity to adjust our products and solutions.

Q: According to its first-quarter financial statement, NSN's revenue decreased compared to last quarter, while your rivals Huawei and ZTE are catching up. How will you cope with the decline and how will you face the challenge from your rivals?

A: The sales volume of Huawei Technologies and Zhongxing Telecommunication Equipment (ZTE) is growing faster than us. But we are not only looking for the market share. We pay more attention to the growth when it is compared with our previous performance.

Although the sale volume in first quarter of 2008 declined compared with the fourth quarter of 2007, NSN has exceeded its first quarter target.

For the telecom industry, the situation is, the later quarter, the more sales volume. So I think our performance in the first quarter is normal.

Q: Could you shed light on NSN's competitiveness in the next half-year? Are there any new approaches using green products?

A: The green solutions just started a year ago. We are promoting them globally. Equipped with new technology, NSN's energy-efficiency solutions can help customers save up to 70 percent in energy consumption. We hope we can promote it widely.

Q: Nokia Siemens Networks consists of two powerful companies accounting for 50 percent each. How did the two strong company cultures mix together?

A: The primary thing is we have to forget the past. We come together to create a new culture for the company, and following new culture is the most important thing for us.

If we argue which previous culture is better, maybe neither is suitable for the new company. So initiating a new one is the most fair and efficient way to coordinate the efforts.

(China Daily 06/23/2008 page6)