Thread: A Big Dil ByNokia

Nokia Siemens Networks said on Friday it won network expansion orders worth 550 mn euros ($865 mn) from the world's top mobile operator China Mobile in the first half of the year.

Telecoms network gear makers are battling with falling prices and subdued demand, raising fierce battle for any new business on the market.

Alcatel-Lucent's June announcement of a $1 bn deal win from China Mobile prompted some analyst fears Nokia Siemens (NSN) and Ericsson had lost business.

Ericsson has said it did not compete for the framework deal. Nokia Siemens' Friday announcement was similar to Alcatel-Lucent's, wrapping different business with China Mobile under one statement. "This is a summary of our business with China Mobile in the first half of the year," said an NSN spokesman.

NSN said the deals included designing, building, maintaining and optimising radio and core networks of the operator -- increasing its network capacity and improving customer experience, while controlling capital and operating costs.

Nokia Siemens, Ericsson and Alcatel-Lucent 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 and Nokia Siemens saw their profits falling in the first quarter, while Alcatel-Lucent continued to report losses.

All three have forecast no market growth this year. Nokia Siemens Networks is a 50-50 joint venture of the world's top cellphone maker Nokia and German conglomerate Siemens.

Shares in Nokia were 1.6 percent higher at 16.41 euros 0856 GMT, outperforming the 0.4 per cent firmer DJ Stoxx European Technology index. Shares in Alcatel-Lucent were 1 per cent lower in Paris, while Ericsson shares were 0.8 per cent higher in Stockholm.