November 13, 2009 / 7:43 PM / in 9 years

UPDATE 1-China's Huawei takes No. 2 spot in mobile gear

* Ericsson Q3 market share 32 pct, flat yr/yr-Dell’Oro

* Huawei Q3 share 20 pct vs 11 pct yr ago-Dell’Oro

* Nokia Siemens Q3 share 20 pct vs 24 pct yr ago (Adds details, background)

By Tarmo Virki, European technology correspondent

HELSINKI, Nov 13 (Reuters) - China’s Huawei Technologies [HWT.UL] took the No. 2 position in the global mobile network gear market in the third quarter, almost doubling its market share from a year ago and surpassing Nokia Siemens NOK1V.HE.

Competition for new business in the telecommunications equipment market has been cut-throat during the past few years, driven by Asian vendors, and the outlook remains tough.

Sweden’s Ericsson (ERICb.ST) continues to lead the market with a 32 percent share, researcher Dell’Oro said on Friday.

Further strengthening its position, Ericsson on Friday closed its $1.13 billion acquisition of CDMA and LTE assets of bankrupt Nortel Networks NRTLQ.PK. [ID:nWNAB5917]

Huawei’s market share rose to 20 percent from 11 percent a year ago, Dell’Oro said in its quarterly market review, while the market share of Nokia Siemens Networks (SIEGn.DE) [NSN.UL] dropped to just below Huawei.

Last week Huawei won a contract to build Norway a fourth generation (4G) mobile network, replacing the older networks of Ericsson and Nokia Siemens Networks in their own backyard.

The deal is the largest one so far for the new LTE technology in Europe, making it a milestone for Huawei.

Nokia Siemens has struggled with falling market share for several quarters as its owners Nokia and Siemens have looked for profits from the ailing business unit. Last week it unveiled plans to cut up to 5,800 positions.

Smaller network gear vendor Motorola Inc MOT.N is in the early stages of a potential sale of its $4.5 billion television set-top box and network equipment business, two sources said earlier this week. (Editing by Simon Jessop and Steve Orlofsky)

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