There certainly was not a lack of trying in the constituent duo. Nokia's acquisition of startup stars like Ipsilon Networks in IP switching, Diamond Lane Communications in DSL, and Amber Networks Inc. in routing, could have given the wireless leader a powerful arsenal in wireline packet communications. But what went in the door at Nokia rarely emerged on the other side.

Siemens has a richer mix of DWDM, ROADM, multi-service switch, and similar architectures in its Surpass line, and has defined many circuit-to-packet softswitch architectures. On the way to becoming the expert in softswitches, however, Siemens decided in 2002 to sell its Unisphere Networks routing subsidiary to Juniper Networks, thereby eliminating its base in Layer 2-4 native IP. There's also a bit of a disconnect, however, in many Surpass access, enterprise, and mobility solutions that continue to be sold under the Siemens label.

These problems are by no means fatal, the combined Nokia-Siemens could still be an expert in IPTV and multiservice provisioning. But that unexpected Scandinavian dark horse L.M. Ericsson made some very clever acquistions in recent months, picking up Redback Networks, Entrisphere, and (maybe) Tandberg TV. Can a shrunken Nokia Siemens still challenge the likes of Ericsson, Alcatel-Lucent, Cisco, and Juniper? Stay tuned.