FRANKFURT -- Consolidation continued in the telecom space as Nokia and Siemens announced the combining of heir mobile-network operations to create a 50:50 joint venture with annual revenue of about $20 billion.

The new entity will be called Nokia Siemens Networks and is expected to be finalized by year-end, pending regulatory approval.
Merging will be Nokia's network business group and Siemens' carrier-related operations. The joint venture will employ 60,000 workers, Nokia said. Between 10 and 15% of the two firm's current employees -- reportedly 9,000 jobs -- would likely be cut over the next four years.

Peter Schoenhofer of Siemens was named the JV's chief financial officer.

Joining forces will allow the firms to compete with Ericsson, which agreed last fall to buy Marconi's broadband Internet and telecommunications assets for 1.2 billion pounds. In April, Alcatel agreed to purchase Lucent Technologies in an all-stock deal worth $13.4 billion.

Ericsson is the market leader in equipment sales to wireless network providers.