May 5, 2009 / 10:02 AM / 9 years ago

FACTBOX-Top telecom gear makers

 May 5 (Reuters) - French telecoms equipment maker
Alcatel-Lucent ALUA.PA reported a bigger-than-expected
first-quarter loss on Tuesday. [ID:nL4365142]
 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    yr-on-yr 
                                                   pct change
 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:
 The Swedish company had a 32-percent market share at the end
of 2008, 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]
 The 50-50 venture of Nokia NOK1V.HE and Siemens SIEGn.DE
started operations in April 2007 and has 23 percent of the
market, but is focusing on improving profits and cash flow while
fending off Ericsson and China's Huawei.
 Last month 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 looking to buy assets from smaller rival
Nortel, which has filed for bankruptcy protection.
 The Franco-American group, created in December 2006, had a
14 percent market share at the end of last 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.
 China's top telecoms gearmaker has grabbed 12 percent of the
global market and could catch Alcatel-Lucent this year with
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.
 The Canadian vendor fell behind Huawei last year and in the
fourth quarter had 6 percent of the market. In January it filed
for bankruptcy protection, blaming the economic crisis. Its
stronghold is 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 technologies.
 ZTE 0763.HK
 China's second-largest telecom equipment maker shares the
same hometown, Shenzhen, in southern China with larger rival
Huawei. It also enjoys close ties to local government, which
have helped it expand, first in developing markets in Africa and
South America, but in recent years also in the more mature
European and North American markets. It overtook Motorola
MOT.N last year to become the 6th largest mobile gear maker,
controlling 5 percent of the market.
 Sources: Market share data from dell'Oro.
(Reporting by Tarmo Virki; Editing by David Holmes)

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