AUSTIN, Texas-Siemens announced it will spend $500 million to re-enter the U.S. telecommunications market. The company exited the U.S. telecom business in 1998.
The company said its $500 million mobile communications effort will include strengthening existing businesses, entering new markets, building its brand awareness among consumers and corporate restructuring through its newly formed Information and Communications Mobile Group. RCR originally reported the company’s plans to revisit the U.S. market last month.
The new unit will consolidate Siemens mobile communications business, including its existing cordless phone and wireless network businesses, in the company’s new 60,000-square-foot facility in San Diego.
“The global wireless market offers exciting growth potential in applications, devices and infrastructure,” said Rudi Lamprecht, president of Siemens ICM Group. “We reached the No. 3 position for mobile phones in Europe within a year and intend to use that same aggressive model for the mobile business in the U.S.”
Siemens noted the expansion in the United States is supported by the company’s recent acquisition of Bosch’s mobile communications research and development sector and strategic partnerships with NeoPoint Inc. and Proxim.
Siemens also said it intends to outsource its U.S. cordless manufacturing operations in order to reduce assets, improve cost-effectiveness, leverage higher volume production and provide greater flexibility to increase time-to-market requirements.
