According to Yahoo News, “Nordic telecommunication giants Nokia and Ericsson will need to grow by acquisition to counter the long-term impact of a planned merger of Alcatel and Lucent on their business.”

French company Alcatel and US company Lucent are merging to become a giant company worth about $25 billion, which will make them the 2nd biggest telecom in the world (behind US-based Cisco).

Some analysts are suggesting that Nokia should now think about merging with German company Siemens. Similarly, Ericsson should consider increasing its fixed-line business so that it can stay competitive.

For now, according to Optically Networked, Alcatel and Lucent are focusing on “the massive job of synchronizing operations on both sides of the Atlantic” and deciding which side will “bear the brunt of the layoffs, which are expected to be about 10 percent of the combined workforce of about 88,000.”