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Chinese equipment vendors closed in on Ericsson in 2009

Telecom equipment vendor L.M. Ericsson Telephone Co. maintained its leading share of the global network infrastructure market in 2009, but Chinese rivals closed the gap to the Swedish company, according to research firm Gartner Inc.

The worldwide market for carrier network infrastructure, including gear such as mobile and fixed-network equipment, routers and switches, shrunk to $79 billion in 2009 from $93 billion in 2008 amid the global economic downturn, Gartner research director Sylvain Fabre told Dow Jones Newswires on Friday.

Ericsson still managed to increase its market share to 20.8% in 2009 from 18.7%, possibly helped by its size as carriers looked for stable, one-stop-shop suppliers, said Fabre.

However, he said Chinese rivals Huawei Technologies Co. and ZTE Corp. narrowed the gap to the market leader, growing their market shares respectively to 14.2% from 11.5% and to 6.7% from 4.1%.

The Chinese vendors have so far been able to gain ground due to low prices although the pricing gap to Western firms is narrowing in mature markets, Fabre said, adding that the quality of their equipment is quite similar to the gear offered by Western rivals.

The Chinese may well continue winning market shares provided that they can maintain good technical quality as their output grows, Fabre said, adding that they will probably want to boost their position in the professional services business.

The market shares of Paris-based Alcatel-Lucent and Nokia Siemens Networks, a joint venture between Finland's Nokia Corp. and Germany's Siemens AG, remained relatively stable in 2009 from 2008, dropping to 12.7% from 13% and to 11.6% from 11.9%, respectively, said Fabre.

Источник: Total Telecom

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