Siemens Bets on Convergence

Siemens is betting on convergence, combining its ICN wireline network division with its ICM wireless network and handset unit to form a comprehensive telecom division. Siemens said it is keeping the company's original goals for its new telecom-wide division and plans to grow the division faster than the overall telecom market.

The announcement comes amid recent losses reported in the company's mobile phone business. Siemens expects its new telecom division to post sales between €17 billion and €18 billion for the 2004 fiscal year.