Nokia Siemens replaces base stations
LONDON, June 3 (Reuters) – Nokia Siemens Networks said on Tuesday it has replaced 18,000 base stations made by its rivals as telecom carriers vie for lower operational costs, in the latest sign of fierce competition in the struggling sector.
Nokia Siemens Networks said 22 operators in 15 countries had chosen its products to replace the installed base stations of other vendors, including all its large rivals, since the venture started operations in April 2007.
Nokia Siemens, Ericsson and Alcatel-Lucent are the leading players in the telecoms network market but have been increasingly challenged by Chinese vendors Huawei and ZTE in the last few years.
With aggressive pricing Huawei took the No 4 spot in the global telecom network gear market in the January-March quarter, bypassing Nortel Networks and Motorola, according to research firm Dell’Oro.
Ericsson has said the market was set to improve and price competition likely to ease. Many sector followers had expected the market to have eased by now, but Nokia Siemens Chief Financial Officer Eric Simonsen said last month Ericsson was following Huawei in the pricing battle.
Ericsson’s market share was 33 percent in January-March, almost unchanged from the previous quarter, but down from 35 percent a year earlier, while Nokia Siemens Networks market share was at 24 percent, according to Dell’Oro.
Alcatel-Lucent had 16 percent of the market, one percent less than a year earlier.
Replacing other vendors’ technology is not unusual in the competitive industry, but 18,000 base stations would be enough to create a 3G network in a large European country.
Nokia Siemens Networks said its Flexi base stations use up to 70 percent less energy than some rival products — enabling carriers to cut operating costs of base station sites.
“The Flexi Base Station helps to achieve significant site cost savings through reduced construction work, rent, rapid base station installation and decreased power consumption,” Marc Rouanne, head of Nokia Siemens’ Radio Access unit, said in a statement.
Nokia Siemens Networks, a 50-50 joint venture of Nokia and Siemens, is in the midst of a 2 billion euros ($3.11 billion) cost-cut programme, scheduled to be completed by the end of the year.