FACTBOX-Top players in ailing mobile network gear market

Nov 3 (Reuters) - Nokia Siemens Networks 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. Following is a summary of the top players in the industry and their market positions: ERICSSON 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. 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 The 50-50 venture of Nokia and Siemens 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 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 with Bain Capital last year. ALCATEL-LUCENT 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. 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 company expects the market to shrink between 8 and 12 percent in 2009. ZTE 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 has 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 has risen in the rankings, bypassing Nortel and Motorola , to control 8 percent of the market. CISCO The U.S. group on Oct. 13 unveiled plans to buy advanced wireless equipment maker Starent Networks Corp for $2.9 billion to boost its product offerings as phone carriers build out next-generation networks. The deal puts it increasingly in direct competition with top wireless gear makers as Starent makes network equipment that connects mobile phone service providers' core networks to 3G and 4G radio access networks. (Reporting by Tarmo Virki; Editing by David Holmes) ($1=.6835 Euro) Keywords: NOKIASSIEMENS/MARKET Keywords: NOKIASSIEMENS/MARKET ([e-mail], [phone], Reuters messaging: [e-mail]) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.

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