NSN pulls rug from under Huawei in Scandinavia

Nokia Siemens Networks (NYSE:NOK, NYSE:SI) looked set to lose a key 4G contract in its home turf to Chinese challenger Huawei, but when the dust settled NSN came up with TeliaSonera’s long-term evolution (LTE) contract along with fellow Nordic vendor Ericsson (NASDAQ:ERIC). Huawei and Ericsson built TeliaSonera’s initial launch networks in Oslo and Stockholm, which seemed to all but guarantee them the final build out contracts, but today the carrier announced it would continue its two-country roll-out in 29 markets this year using Ericsson and NSN gear. Meanwhile Huawei was left out in the chilly Scandinavian cold.

Ericsson came out the bigger winner in the contest as it will supply both radio access and evolved packet core equipment, but new NSN CEO Rajeev Suri must be letting out a sigh of relief. NSN has won some significant LTE deals, most notably a joint contract with Japan’s Panasonic (NYSE:PC) to develop NTT DoCoMo’s (NYSE:DCM) base stations and evolved packet core and an IP multimedia subsystem contract with Verizon Wireless (NYSE:VZ, NYSE:VOD). But this is it’s first public contract for its a 4G network in its primary market Europe. Most European operators haven’t announced their LTE vendors yet, but the handful of Scandinavian operators that have, have shown a predilection to pick Huawei at the expense of incumbents NSN and Ericsson.

This may be NSN’s first LTE deployment in Scandinavia, but it likely won’t be its last. NSN is revamping Telenor Denmark’s 3G network for HSPA+, using equipment that can eventually be upgraded to LTE. In fact, it’s deployed its software upgradable Flexi base station in several networks all over the world, including in Telus and Bell Canada’s networks here in North America.

TeliaSonera today also announced the scope of its LTE rollout this year after just managing to bring the world’s first commercial networks live in 2009. It will launch LTE service in Sweden’s 25 largest cities and towns and in Norway’s four largest municipalities this year.

Leave a Reply

Security Code: