FACTBOX-Top players in ailing mobile network gear market

Nov 3 (Reuters) - Nokia Siemens Networks [NSN.UL] could cut up to 5,800 jobs, aiming to slash annual costs by more than 1 billion euros ($1.5 billion) as telecoms gear maker struggle amid falling prices and lower demand. [ID:nL3596698] Following is a summary of the top players in the industry and their market positions: ERICSSON (ERICb.ST)

The Swedish company is the market leader, with a 32 percent market share in the April-June quarter, down from recent years but still well ahead of rivals distracted by the need to integrate mergers.

It has the fattest margins in the industry due to greater economies of scale, but the downturn finally caught up with Ericsson in the third quarter, when it missed forecasts and would not say when things might improve. [ID:nLM420454]

Through the 2005 acquisition of UK-based fixed-line communications maker Marconi, Ericsson expanded onto its rivals' turf. Telecom operators are increasingly offering bundled services of broadband, fixed-line and mobile services to users, so Ericsson felt it had to broaden its reach.

NOKIA SIEMENS NETWORKS [NSN.UL]

The 50-50 venture of Nokia (NOK1V.HE) and Siemens (SIEGn.DE) started operations in April 2007 and has 20 percent of the market, but is focusing on improving profit and cash flow.

On Oct. 15, NSN said it sees the telecoms gear and services market falling around 5 percent in euro terms in 2009 and said its market share would fall more than it had expected earlier.

On Nov. 3 the group unveiled a new cost-cutting programme, seeking to save over 1 billion euros to stay competitive in the cut-throat market.

HUAWEI [HWT.UL]

China's top telecoms gearmaker overtook Alcatel-Lucent to become third in terms of market share in the first quarter. It strengthened its position in April-June, with its market share roughly doubling year-on-year to 17 percent, supported by aggressive pricing and state financial backing.

China's commerce minister said in March both Huawei and cross-town rival ZTE would see 2009 sales rise 30 percent. But the company is secretive and its ties to the state are one of the reasons the U.S. government derailed its plans to buy 3Com Corp (COMS.O) with Bain Capital last year.

ALCATEL-LUCENT (ALUA.PA)

The Franco-American group created in December 2006 had a 12 percent market share in the second quarter. Its history has been dogged by weakening demand, merger-related costs, political infighting and uncertainty over product integration.