Siemens Enterprise Communications is looking for a partner to help it enter the data communications market.
The company, carved from Siemens Telecommunications last year, when the Nokia Siemens joint venture was formed, says it has strict criteria for the winning partner. Siemens Enterprise Communications CEO Raymond Padayachee says this includes sustainability, technology, financial strength and global presence.
"Siemens is quite clear on this: we will find a partner that can add value to the company. If we don't find it, that's okay," he notes.
Head of marketing Fred Maurus says the partnership requirement is driven by the need for the company to protect its market share from new entrants providing IP-enabled services.
Demand for these services is increasing and new ways of communicating are emerging, which could make Siemens Enterprise Communications' life difficult unless it adapts, he says.
Local issues
Padayachee says processes are under way to find a potential partner. He would not provide clarity on the potential impact of the deal on Siemens' South African operations, which have 12 000 customers and employ 400 people. "It will depend on who the partner is."
However, services offered to the local market will be enhanced to include data services, depending on the partner, he says.
Maurus adds that in SA, the migration to IP-enabled services is slow due to high bandwidth costs. However, demand will accelerate as bandwidth costs decrease.
Padayachee adds the partnership the company seeks does not fall within the black economic empowerment (BEE) sphere, as it's on a global scope and BEE policies only apply to South African operations.
Siemens Enterprise Communications gained empowerment credentials through Reunert's 40% shareholding in Siemens, he says.
Padayachee adds the recent consolidation following the decision to create Siemens Enterprise Communications as a standalone company was beneficial to the company's operations. In Johannesburg, the company consolidated its operations from three buildings into one. This enhanced productivity and efficiency, reduced bureaucracy and facilitated swifter decision-making.
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