FACTBOX-Top wireless telecom gear makers

Related Topics

Mon Jun 22, 2009 8:39am EDT

 HELSINKI, June 22 (Reuters) - Nortel Networks NT.TO has
agreed to sell its key mobile network equipment assets to Nokia
Siemens Networks [NSN.UL] for $650 million, the companies said
on Friday. [ID:nN19469126]
 Following are comparative first-quarter numbers from the
world's three biggest mobile telecom equipment vendors, followed
by a summary of the top global players in the sector: 
 
 Revenue (in millions of euros) 
                         Q1 '09   Q4 '08   Q1 '08   Q1 YOY
                                                    pct chng
 Ericsson (ERICb.ST)         4,691    6,343   4,180      +12  
 Alcatel-Lucent (ALUA.PA)    3,598    4,954   3,864       -7  
 Nokia Siemens [NSN.UL]      2,990    4,338   3,401      -12  
 
 Underlying operating profit margins (in percentage points) 
                     Q1 '09   Q4 '08   Q1 '08 
 Ericsson                 9.5     14.6      7.6 
 Alcatel-Lucent          -7.1      6.0      0.9 
 Nokia Siemens Networks  -4.1      5.2      2.4 
 
 Key players in the industry: 
 ERICSSON 
 The Swedish company had a 33-percent market share in
January-March quarter, down from recent years but still well
ahead of rivals who have focused on integrating their
businesses. 
 Through the 2005 acquisition of fixed-line communications
maker Marconi, Ericsson further blurred the lines between the
fixed and mobile sectors. Telecom carriers are cutting costs by
offering the same services to fixed-line and mobile users.
 Ericsson's first-quarter core profit fell more than expected
due to weak margins in its key network business but the world's
top mobile equipment maker said the global downturn had not hit
the mobile network market that much yet. [ID:nLU13920]
 NOKIA SIEMENS NETWORKS
 The 50-50 venture of Nokia (NOK1V.HE) and Siemens (SIEGn.DE)
started operations in April 2007 and has 21 percent of the
market, but is focusing on improving profits and cash flow while
fending off Ericsson and China's Huawei.
 In April the venture said it sees the market falling some 10
percent in euro terms in 2009. It had earlier forecast at least
a 5 percent decline. [ID:nLG248661] 
 To boost its market share and get the business back into the
black, Nokia Siemens is buying key assets from smaller rival
Nortel NT.TO, which saw market share shrinking over the last
few quarters and filed for bankruptcy protection in January.
 Nokia Siemens is buying Nortel's stronghold in CDMA
technology, which has been popular in the Americas but is fading
as the two largest operators there have cut investments, looking
to newer, high-speed LTE technology. Nokia Siemens also buys
Nortel's LTE assets. [ID:nN19469126]
 HUAWEI [HWT.UL]
 China's top telecoms gearmaker market share passed
Alcatel-Lucent as market No 3 in the first quarter. Its market
share roughly doubled from a year ago to 15 percent supported by
aggressive pricing and state financial backing.
 China's commerce minister said in March both Huawei and
cross-town rival ZTE will see 2009 sales expand 30 percent. But
the company is secretive and its ties to the state are one of
the reasons the U.S. government nixed its plans to buy 3Com Corp
COMS.O with Bain Capital last year. 
 ALCATEL-LUCENT
 The Franco-American group created in December 2006 had a 14
percent market share at start of the year. Its history has been
dogged by weakening demand, merger-related costs, political
infighting and uncertainty over product integration.
 The loss-making group replaced its chief executive and
chairman last year and new CEO Ben Verwaayen expects to report a
net profit during 2010. The firm expects the market to fall 8-12
percent in 2009.
 Sources: Market share data from dell'Oro. 
 For analysis on the Nokia-NSN deal please double click on
[ID:nLL560595]   
(Reporting by Tarmo Virki, Editing by Sitaraman Shankar)

Related Quotes and News

Company
Price
Related News
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.