After unloading its underperforming mobile phone manufacturing business to BenQ in June, German electronics giant Siemens has decided to spin out its customer premises equipment (CPE) unit into a new, fully owned subsidiary.
The new company, Siemens Home and Office Communications Devices, will design, manufacture and distribute the Siemens range of Gigaset cordless phones for both traditional fixed-line and new VOIP (voice over Internet Protocol) networks, as well as broadband products and home media devices, Siemens said this week.
The move to create a new company focused on CPE will help Siemens respond more quickly and efficiently to the needs of the fast-paced home networking consumer market, the company said.
The company, to be based in Munich, will have a workforce of around 3,700 worldwide. It will begin operations in October.
Siemens, which claims to be one of the largest suppliers of DECT (Digital Enhanced Cordless Telecommunications) cordless phones, estimated its annual CPE sales at around Euro 1 billion (AUD$1.6 billion).
The German manufacturer hopes to carve a larger slice out of the market for voice, data and video communication devices for the home and small business market, which the company projects will be worth Euro 16 billion by 2010, by working closely with network operators offering triple-play services, it said.