NSN Q2: Market share to remain flat in 2010

Having had two big news days in a row last week, Nokia Siemens Networks' (NSN) good news came to a halt of sorts. Having previously been optimistic about its market share prospects for 2010, NSN now says it will likely only maintain its market share in 2010.

NSN blamed  the "ongoing industry-wide issue related to security clearances in India, which is preventing the completion of product sales to customers and shortages of certain components that are affecting the broader industry."

While NSN didn't report significant losses like it did in 2009, revenues for the second quarter fell 5 percent from the previous year but were 12 percent better than the first quarter. Operating loss was $230 million, an improvement both from 2009 and the previous quarter. Minus one-time charges and special items, NSN recorded an operating profit of $65.6 million.

Last week NSN announced plans to acquire Motorola's (NYSE:MOT) wireless network business minus the iDEN business. The move gives the company strength in the North American and Japanese markets. In addition, the joint venture won a $7-billion deal with LightSquared, a new nationwide company backed by Harbinger Capital that will sell LTE services on a wholesale basis.

When it comes to India, which recently auctioned both 3G and mobile broadband licenses, major infrastructure awards have been delayed over the role Chinese suppliers might play given security concerns surrounding companies such as Huawei, which is constantly been rumored to have ties to the Chinese military, and ZTE. The Indian government is mulling over a decision, prompting operators there to wait on all contracts until they know whether Chinese vendors can bid for deals.

Nokia revealed during its earnings call that NSN would have recorded about $260 million in additional revenue in the quarter had Indian security clearances been obtained. Although other vendors haven't been public about the delays in India, their revenues have been impacted as well.

For more:
- see this Light Reading article
- take a look at this Rethink Wireless article
- check out the FierceWireless Q2 earnings page

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