Siemens Communications

Siemens Communications was the communications and information business arm of Siemens AG. It operated as one of the German conglomerate's largest divisions from 1998 until its formal separation in 2006, supplying telecommunications infrastructure, enterprise voice and data systems, network services, and related consulting and support. Its activities served both communications carriers and business customers, spanning mobile networks, fixed networks, carrier services, private branch exchange systems, enterprise networking, and computer-related communications products. The division was created on 1 October 1998 during a major Siemens restructuring. The new organization combined several earlier communications and information-technology businesses, including activities descended from Siemens Communication Systems, Siemens Information Systems, Siemens Business Communication Systems, and Siemens GEC Communication Systems. Its industrial heritage ultimately reached back to Siemens & Halske Telegraph Construction Company, founded by Werner von Siemens in 1847. That predecessor built long-distance telegraph infrastructure in Europe and Russia and participated in the Indo-European telegraph line, establishing a communications-engineering lineage that long predated the Siemens Communications name. Before the 1998 consolidation, Siemens had expanded through reorganizations and acquisitions. Siemens Communication Systems had been established in 1978 and divided in 1985 between public-network products and private business communications. Siemens Information Systems acquired Rolm Systems from IBM in 1989, strengthening its North American PBX position. Siemens also became involved in the former Plessey and GPT businesses, acquired Stromberg-Carlson's public-switching activities in 1990, and purchased Mercury Communications' PABX business in 1996. These transactions helped assemble the carrier and enterprise capabilities later brought together under Siemens Communications. At formation, the division offered products, systems, solutions, services, and support for designing, operating, and maintaining carrier and corporate networks. It initially emphasized international expansion, including the United States, where it faced established competitors such as Nortel Networks, Lucent Technologies, and Cisco Systems. In 1999 it acquired Castle Networks and Argon Networks, two Massachusetts-based data-networking companies. Siemens also pursued greater visibility in American capital markets and accounting practices, including its 2001 New York Stock Exchange listing at the Siemens AG level. In 2002, Siemens combined its enterprise sales and marketing organization with customer service into an Enterprise Networks unit. The division was consequently organized around two broad areas: Mobile Networks and Fixed Networks, serving carriers, and Enterprise, serving business communications customers. This structure preceded the decisive 2006 breakup. On 1 October 2006, Siemens AG transferred the carrier activities into Siemens Networks GmbH & Co. KG and separated the enterprise activities into Siemens Enterprise Communications GmbH & Co. KG. The carrier business became the Siemens side of Nokia Siemens Networks, a joint venture with Nokia's network business. Nokia later acquired Siemens' interest in 2013, and the Nokia Siemens Networks name was phased out during Nokia's 2014 rebranding. The enterprise business followed a different path. In 2008, Siemens Enterprise Communications became a joint venture in which Siemens held 49% and the Gores Group held 51%. The venture used the Open Communications name and marketed products including OpenStage IP phones. A separate Siemens wireless-modules activity moved into Siemens' Automation & Drives organization and later became Cinterion Wireless Modules, which was subsequently acquired by Gemalto. Thus, although the Siemens Communications division itself ceased to operate as a single organization, parts of its portfo…

Siemens Communications developed from Siemens' long involvement in communications engineering. Its earliest cited ancestor was the Telegraphen-Bauanstalt von Siemens & Halske, established by Werner von Siemens on 12 October 1847. The company built telegraph equipment and infrastructure, including a 500-kilometre Berlin–Frankfurt line in 1848, long-distance networks in Russia, and the approximately 11,000-kilometre Indo-European telegraph line linking London and Calcutta. Siemens & Halske later became one of the foundations of Siemens AG. During the first half of the twentieth century, Siemens' activities were divided among Siemens & Halske, Siemens-Schuckertwerke, and Siemens-Reiniger-Werke. These entities were combined in 1966 to form Siemens AG, giving the group a broad platform across electrical engineering, industrial systems, transport, medical technology, and communications. Communications activity was subsequently reorganized several times. Siemens Communication Systems was established in 1978 and split in 1985 into a public-network business and a business focused on PBX and computer-related products. The communications portfolio expanded through acquisitions and corporate combinations. Siemens Information Systems acquired Rolm Systems from IBM in 1989, adding substantial North American PBX capability. Siemens also participated with GEC in the post-Plessey restructuring and in the GPT telecommunications venture. In 1990, Siemens Communication Systems acquired Florida-based Stromberg-Carlson, reinforcing its role in central-office switching. In 1996, Siemens acquired the PABX business that Mercury Communications was leaving, creating Siemens Business Communication Systems. GPT was renamed Siemens GEC Communication Systems in 1997, and that business was combined with Siemens Business Communication Systems in 1998. Against the background of a late-1990s Siemens restructuring, the group combined its communications and information-technology activities on 1 October 1998. The resulting Siemens Information and Communication Networks organization became widely known as Siemens Communications or Siemens COM. It was described as Siemens' largest division and offered complete network-related systems, products, services, maintenance, planning, and financial consultancy for carriers and corporate customers. Its operating scope included mobile networks, fixed networks, enterprise communications, telephony, data networking, and related support. The division pursued international growth, with particular attention to the United States, a market in which Nortel Networks, Lucent Technologies, and Cisco Systems were prominent competitors. The 1999 purchases of Castle Networks and Argon Networks expanded its data-networking capabilities. Siemens AG's 2001 New York Stock Exchange listing and adoption of more transparent American-style reporting also occurred during this period. In 2002, enterprise sales and marketing were combined with customer service as Enterprise Networks, leaving the division organized around carrier-facing Mobile and Fixed Networks and an Enterprise business. The single-division structure ended on 1 October 2006. Siemens AG created Siemens Networks GmbH & Co. KG for mobile networks, fixed networks, and carrier services, while Siemens Enterprise Communications GmbH & Co. KG carried the enterprise business. Siemens Networks was then combined with Nokia's network operations in Nokia Siemens Networks, with Nokia holding 50.1% and Siemens 49.9%. Nokia bought Siemens' shares in 2013, and the Nokia Siemens Networks name was retired during a 2014 rebranding. The enterprise successor developed separately. In October 2008 it became a joint venture between Siemens and the Gores Group, with Siemens holding 49% and Gores 51%. It used the Open Communications name and marketed OpenStage IP phones. Siemens' wireless-modules unit also left the communications division, moving into Automation & Drives and becoming Cinterion Wireless Modules before a later acquisition by Gemalto. Siemens Communications therefore survives as a historical organizational and brand lineage rather than as a current standalone Siemens division.

1. 2014Nokia Siemens Networks branding retired

   The Nokia Siemens Networks name was phased out during Nokia's rebranding of the network business.

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2. 2013Nokia acquires Siemens' network stake

   Nokia acquired Siemens' interest in Nokia Siemens Networks.

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3. 2008Enterprise successor becomes a joint venture

   Siemens Enterprise Communications was reorganized with the Gores Group as majority partner.

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4. 2006Siemens Communications divided

   Siemens transferred carrier activities to Siemens Networks and enterprise activities to Siemens Enterprise Communications.

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5. 2002Enterprise Networks formed

   Enterprise sales and marketing were combined with customer service into the Enterprise Networks business.

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6. 1999Castle Networks and Argon Networks acquired

   The division acquired two United States data-networking companies.

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7. 1998Siemens Communications created

   Siemens consolidated its information and communications activities into Siemens Information and Communication Networks, commonly known as Siemens Communications.

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8. 1989Rolm Systems acquired from IBM

   Siemens Information Systems acquired Rolm Systems, strengthening its North American private-branch-exchange business.

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9. 1985Communications activities reorganized

   Siemens separated public-network products from PBX and computer-related products in two reorganized businesses.

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10. 1978Siemens Communication Systems established

    Siemens created Siemens Communication Systems, a direct organizational predecessor of the later communications division.

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11. 1966Siemens AG formed through corporate merger

    Siemens & Halske, Siemens-Schuckertwerke, and Siemens-Reiniger-Werke were merged into Siemens AG.

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12. 1867Indo-European telegraph line completed

    Siemens completed the major telegraph route linking London and Calcutta.

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13. 1848Berlin–Frankfurt telegraph line completed

    The predecessor company built a 500-kilometre long-distance telegraph line between Berlin and Frankfurt am Main.

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14. 1847Siemens & Halske founded

    Werner von Siemens founded the Telegraphen-Bauanstalt von Siemens & Halske, the earliest communications predecessor identified in the division's history.

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A full-service telecommunications infrastructure and enterprise communications provider combining carrier networks, business telephony, networking systems, and associated services.

• Mobile NetworksCarrier telecommunications infrastructure

  The mobile-network business supplied infrastructure and related systems for telecommunications operators. It formed part of the carrier-facing side of Siemens Communications and was transferred to Siemens Networks in the 2006 division. That successor was subsequently combined with Nokia's network business in Nokia Siemens Networks.

• Fixed NetworksCarrier telecommunications infrastructure

  Fixed Networks covered equipment and solutions for fixed-line carrier networks, including the public-network activities that descended from Siemens Communication Systems. It was separated from the enterprise business in 2006 and became part of the Siemens carrier-network successor.

• Enterprise NetworksEnterprise communications2002

  Enterprise Networks brought together Siemens' enterprise sales, marketing, and customer-service functions. The wider enterprise portfolio addressed corporate voice, data, PBX, IP telephony, and network-support requirements. Its activities moved into Siemens Enterprise Communications when Siemens Communications was divided in 2006.

• OpenStageIP telephony

  OpenStage was a family of IP phones produced by the Open Communications venture created after the enterprise communications business was reorganized with the Gores Group. The line represented the enterprise successor's focus on IP-based business communications rather than the carrier infrastructure activities transferred to Nokia Siemens Networks.

• RealitisPBX telephone system

  Realitis was a PBX telephone system built in the United Kingdom. The system was subsequently branded HiPath DX and was described as the replacement for the Siemens ISDX PBX. It belonged to the enterprise and business-communications heritage of Siemens Communications.

• Wireless ModulesWireless communications modules

  The wireless-modules unit designed and manufactured GSM and 3G modules for machine-to-machine markets. It was moved from Siemens Communications into Siemens' Automation & Drives division, then operated as Cinterion Wireless Modules before being acquired by Gemalto.

• 2013Nokia takes full ownership of the network successorM&A

  Nokia and Siemens had operated the carrier-network successor as a joint venture since 2007.

  What changed. Nokia acquired Siemens' remaining interest in Nokia Siemens Networks.

  Aftermath. Siemens exited ownership of the carrier-network business, which continued under Nokia and was later rebranded.

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• 2008Enterprise communications joint venture with the Gores GroupM&A

  Siemens pursued a separate ownership and operating structure for its enterprise communications activities after the 2006 division.

  What changed. Siemens Enterprise Communications was reorganized as a joint venture in which Siemens held 49% and the Gores Group held 51%.

  Aftermath. The venture used the Open Communications name and continued the enterprise portfolio, including OpenStage IP phones.

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• 2007Creation of Nokia Siemens NetworksM&A

  The separated Siemens carrier-network business was combined with Nokia's network business to create a telecommunications infrastructure joint venture.

  What changed. Nokia and Siemens established Nokia Siemens Networks, with Nokia holding 50.1% and Siemens holding 49.9%.

  Aftermath. The carrier activities no longer operated under Siemens Communications as an independent division and ultimately became wholly owned by Nokia after its 2013 acquisition of Siemens' stake.

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• 2006Separation of carrier and enterprise communicationsStrategy

  Siemens decided that its carrier-network and enterprise-communications activities should pursue different strategic relationships and organizational structures.

  What changed. On 1 October 2006, Siemens divided Siemens Communications into Siemens Networks GmbH & Co. KG and Siemens Enterprise Communications GmbH & Co. KG.

  Aftermath. The carrier business entered the Nokia Siemens Networks joint venture, while the enterprise business developed through a separate Siemens-led organization and later a Gores Group joint venture.

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• 1998Consolidation of Siemens information and communications activitiesStrategy

  Siemens sought to reorganize its information and communications operations into a larger global division during a group-wide restructuring.

  What changed. On 1 October 1998, the company combined the relevant activities into Siemens Information and Communication Networks, commonly called Siemens Communications.

  Aftermath. The new division became Siemens' principal communications organization, serving both carrier and enterprise customers.

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• 2014Nokia Siemens Networks name is phased out

  The joint venture's former name was removed as part of Nokia's rebranding of the network business.

  Other
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• 2013Nokia acquires Siemens' interest in Nokia Siemens Networks

  Nokia purchased Siemens' remaining stake in the network joint venture, ending Siemens' ownership interest in the carrier-network successor.

  M&A
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• 2008Siemens Enterprise Communications becomes a Gores Group joint venture

  The enterprise communications business was reorganized into a venture in which Siemens held 49% and the Gores Group held 51%.

  M&A
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• 2007Nokia and Siemens establish Nokia Siemens Networks

  Siemens Networks was combined with Nokia's network business in a joint venture focused on mobile and fixed telecommunications infrastructure.

  M&A
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• 2006Siemens divides Siemens Communications into carrier and enterprise companies

  The division was split into Siemens Networks and Siemens Enterprise Communications to enable separate strategic paths for carrier infrastructure and enterprise communications.

  M&A
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• 2002Siemens organizes enterprise activities into Enterprise Networks

  Siemens combined enterprise sales and marketing with customer service to create an Enterprise Networks business within Siemens Communications.

  Leadership change
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• 1999Siemens expands data-networking capabilities with Castle Networks and Argon Networks acquisitions

  The communications division acquired two Massachusetts-based private data-networking companies as part of its effort to strengthen its position in the United States.

  M&A
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• 1998Siemens creates Siemens Communications through a major restructuring

  Siemens consolidated its information and communications activities into Siemens Information and Communication Networks, later commonly known as Siemens Communications.

  Other
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1. Siemens Communications