News

Philips Telecom to be Sold Off?

Comms Business Magazine believes that the Telecoms Division of Philips is about to be sold off. Speculations is growing in the channel that NEC is about to step in and buy the Dutch giant’s phone division is expected to be confirmed this week.

It is believed that an internal staff memo had been circulated to all staff at Philips Business Communications Systems telling employees that the division is soon to be sold according to sources close to Comms Business Magazine.

This was categorically denied by Philips UK managing director Chris Da Silva about two weeks ago when put to him by Comms Business Magazine.

At the time we understood Philips Electric Group, who have for some time made no secret of the fact that they want to off load their comms division, were in discussions with a number of interested parties including Aastra Telecom, NEC and Mitel.

Canada based Aastra has been very acquisitive in 2005 having already gobbled up Ascom’s telecom division and EADS whilst the close, but often muddied relationship between Philips and NEC must make them firm favourites.

Mitel? Hmmm… We don’t think so.

Philips keys systems had a huge market share around the world in the late 1980’s and to a lesser extent in the early 1990’s but has since struggled to get product to market and equally struggled to find channel penetration.