Ericsson maintains services lead, but upstarts growing fast

Ericsson has retained its leadership position in the booming network services sector. The company, according to a report from Technology Business Research (TBR), was the only supplier to exceed US$2 billion in quarterly services revenue in Q3/09.

The TBR study said that, while Ericsson services growth rate had slowed in North America in Q3/09, the company's wide global reach and its early investments into India and China continued to pay off. Together with a y-o-y growth of 23 per cent from the Caribbean and Latin America (CALA) region and growth of over 12 per cent from Asia Pacific, Ericsson's Q3 services revenues of US$2.4 billion made it the clear market leader.

NSN and Alca-Lu were virtually tied for second, each reporting just slightly more than US$1.6 billion in services revenue for the quarter, while IBM and HP-EDS were in a near dead heat for fourth place.

However, y-o-y network services growth rates present a different picture. Cisco led the Tier 1 suppliers during 3Q/09 with over seven per cent, helped by the company's capital financing options finding appeal in cash-strapped markets such as the Middle East and Africa.

China-based suppliers ZTE and Huawei came in second and third place, respectively, for services growth; while ZTE continued to have success expanding its presence largely in China and emerging markets, Huawei is having success penetrating Tier 1 suppliers in mature markets.

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