Nokia Siemens scores China Mobile pact

Nokia Siemens Networks said it won an $874 million deal to expand China Mobile’s network.
The company, a joint venture between Nokia Corp. and Siemens AG, said it will design, build and maintain the network, including base stations and mobile switching systems. China Mobile said the effort will boost capacity and expand services across the country as it minimizes required network capital expenditures.
“Our solution is future-proof since it allows a smooth migration to IP networks and is energy-efficient,” crowed Zhang Zhiqiang, head of Nokia Siemens’ greater China region.
The announcement follows Alcatel Lucent’s $1 billion contract with China Mobile – a deal some saw as a blow to Nokia Siemens in a market where infrastructure players are battling with lower margins and lesser demand from carriers. But while the latest agreement is a substantial win for Nokia Siemens, it does little to improve the company’s outlook for the near future, according to a research note from Matt Thornton, telecommunications equipment analyst at Avian Securities.
“We are unsure as to the timing of the contract,” Thornton wrote. “While we view the contract announcement as an incremental positive, we continue to expect a challenging environment in the infrastructure market and forecast flat growth in the near term on a year-over-year basis.”