For the third quarter of 2013 Chinese equipment manufacturer Huawei maintained its number one ranking rank in the global radio access network (RAN) market with a share of 28.1 per cent, down 3 points from the second quarter 2013 but up 3.8 per cent from the year-ago quarter, according to ABI Research.
Alcatel-Lucent's plan to cut 10,000 jobs worldwide has met with strong resistance in France, where the telecoms equipment manufacturer plans to cut 900 jobs and close or sell up to five sites.
Telefónica has selected Alcatel-Lucent and Ericsson as its network vendors for LTE service in Spain and said it is rolling out an integrated LTE and fibre optic network across the country.
Huawei increased its share of the mobile infrastructure RAN market to 31.1 per cent in the second quarter, meaning that the Chinese equipment manufacturer has overtaken Ericsson to regain the No. 1 position, according to ABI Research.
Huawei intends to spend more on research and development this year in a bid to win over clients from rivals such as Ericsson by offering more than just cheaper products, according to Huawei's head of R&D.
Chinese infrastructure vendor Huawei is making big investments in research and development in hopes of improving upon its existing gear and solving problems that many of its telecom operator customers are facing. The company has been ramping up its R&D efforts over the past couple of years. In 2012 it spent $4.7 billion, or about 13 percent of total group revenue, on R&D. And in 2011, it spent $5.2 billion on R&D, a 34.2 percent increase over the prior year.
Alcatel-Lucent CEO Michel Combes unveiled his much-anticipated restructuring plan for the equipment manufacturer Wednesday, announcing further cost-cutting measures in a drive to become cash-flow positive by 2015.
Europe's mobile network vendors could see a key Chinese tender for TD-LTE equipment delayed until later in the year, as China Mobile executives decide whether to upgrade from 3G or install new network equipment.
Analysts have warned that Alcatel-Lucent must return to profitability soon to avoid a cut in its debt rating, after the equipment manufacturer revealed in its first-quarter results that it is still suffering from high cash burn.
Alcatel-Lucent posted a loss of €353 million in the first quarter of 2013 as the equipment manufacturer continues to burn through cash at an alarming rate, and said it would undertake a review of its strategy by early this summer.