Nokia, the once great giant of Finland, is a shadow of its former self. The company’s mobile and devices division were acquired by Microsoft, but now Nokia is attempting to make a comeback by merging with Alcatel-Lucent.
Should this merger go through, the new company would become the second largest company in the world to create telecommunication products. This would push it ahead of the Chinese company, Huawei, and behind Ericsson. However, the newly formed company would have a market share of 16.9 percent, which is not far ahead of Huawei’s 16.1 percent shares.
Nokia at the moment is a very ambitious company, and to make things even more dangerous for competitors, Nokia has a pot load of money from the Microsoft sale, along with the cash paid by the software giant to use information from HERE Maps to help boost its Bing Maps service.
The newly merged company could move further away from Huawei since the Chinese company among others from the country, have been excluded from selling their products in the United States. This has been done due to allegations that Chinese companies are using their products to spy on the American people.
No word at the moment when the ban hammer will be lifted. With the Chinese government coming down hard on several Western tech related companies, the U.S. government might view it as a safe bet to keep Chinese telecommunication companies from entering its shores.
As expected, Huawei, ZTE, among others have denied these allegations.
If the Nokia and Alcatel-Lucent company can become a huge player in the United States and other parts of the world, it could very well become the number one player in a matter of years. Still, such a task would be difficult since Ericsson is such an excellent player in the game.