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With all of the consolidation among their customers allowing for network efficiencies, along with a dramatic decline in revenues following the telecom bubble, telecom equipment makers have increasingly been joining forces. Alcatel/Lucent, Tellabs/Advanced Fibre, Cisco/Scientific Atlanta, and now, Nokia/Siemens.

The current deal applies only to their network equipment, not to handsets. As yesterday's CNN Money reported:

Nokia and Siemens AG agreed to combine their phone equipment units in a deal worth around $31.6 billion, the Wall Street Journal reported on Sunday, citing people familiar with the matter.

The combined company would contribute both of their network equipment operations into a new entity to be based in Nokia’s home country of Finland, the Journal reported, with Nokia retaining a majority of board seats.

NOK-SI 1-yr chart:

NOK-SI 1-yr chart

Source: More Consolidation in Telecom Equipment As Nokia and Siemens Announce $31.6 Billion Deal (NOK, SI)