FACTBOX-Top mobile telecom gear makers' sales, profit

March 20 - Telecoms gear makers are struggling amid falling prices and lower demand as operators cut spending.

For an analysis "Chinese firms, Ericsson dangling cash for deals" click on . Following are fourth-quarter 2008 revenue in millions of euros from the world's three biggest mobile telecom equipment vendors:

Q4 '08 Q3 '08 Q4 '07 yr-on-yr

pct change Ericsson 5,859 4,301 4,760 +23 Alcatel-Lucent 4,954 4,065 5,230 -5 Nokia Siemens 4,338 3,503 4,583 -5

Following are underlying operating profit margins, in percentage points, for the top vendors:

Q4 '08 Q3 '08 Q4 '07 Ericsson 14.6 11.5 9.8 Alcatel-Lucent 6.0 1.0 5.8 Nokia Siemens Networks 5.2 5.1 4.2

Key players in the industry:

ERICSSON

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 showed the lines between fixed and mobile were blurring. Telecom carriers are cutting costs by offering the same services to both fixed-line and mobile users.

NOKIA SIEMENS NETWORKS

The 50-50 venture of Nokia and Siemens 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.

Nokia Siemens expects the cell phone network equipment market for CDMA technology to fall more than 20 percent in 2009, with the GSM market also falling more than 5 percent.

ALCATEL-LUCENT

The Franco-American group created in December 2006 had a 14-percent market 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 in one fell swoop last year, and CEO Ben Verwaayen expects to report a net profit during 2010. The firm expects the market to fall 8-12 percent in 2009.

HUAWEI China's top telecoms gearmaker has rapidly 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 this month that both Huawei and cross-town rival ZTE will see 2009 sales expand 30 percent.

But the company is very secretive, and its blurred ties to the state are one of the reasons the U.S. government nixed its plans to buy 3Com Corp with Bain Capital last year.

NORTEL

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 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 passed Motorola last year to become the 6th largest mobile gear maker, controlling 5 percent of the market.

Sources: Market share data from dell'Oro.

For another FACTBOX: "Telecom operators cost-cutting hits gear makers" click on