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November 7, 1995

SIEMENS NIXDORF REFOCUSSES EXISTING TELECOMMUNICATIONS BUSINESS, CREATES NEW DIVISION

By CBR Staff Writer

In what appears to be a plan originated by its new chief executive, Gerhard Schulmeyer, Siemens Nixdorf Informationssysteme AG has decided to pool some of its existing talent and goods into a telecommunications line of business, with offices in Frankfurt and Bracknell, Berkshire, as a start. The division will target telecommunications carriers and work in four areas: development of applications for Smart Cards and multimedia; development of intelligent networks, operating support systems and telephony management networks; the implementation of customer care systems such as billing; and directory assistance services. The company said it was already active in these markets, but that those activities were fragmented so it was missing out on exploiting what it believes is a burgeoning market; it reckons traditional carriers are responding to the threat of mobile and cable companies encroaching on their traditional business by trying to offer more advanced and differentiated services. The UK was picked as the second location for the business because of the perceived dynamism of the deregulated market and the fact it is the world’s fourth largest market. Other offices elsewhere in the world will be opened, said the company, but did not elaborate as to when that might be. However, the UK division’s general manager, Huw Hampson-Jones, said his company would be looking to sell its services and products globally, as well as to telecommunications carriers that operate globally. It is investigating opportunities in the Asia-Pacific region and said the market was big enough not to conflict with the German office’s activities. It expects its UK business to be worth ú25m to ú30m within three years. The line of business will work with its sister companies in the Siemens AG empire: Public Communications Systems, on selling switches and managed network services; and Private Communications Systems for private exchanges, as well as with its GEC-Plessey Telecommunications Ltd affiliate. There are also plans to establish a research and development centre in the UK.

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