India Holdups Smack NSN's Q2

The Chinese vendors might be suffering the most from the current security concerns and procurement restrictions in India, but Western suppliers are feeling the heat as well. (See Huawei Confident of Indian Import Resolution and Indian Reprieve for Chinese Vendors .)

Nokia Corp. (NYSE: NOK) revealed today during its second-quarter earnings conference call that its infrastructure joint venture, Nokia Networks , would have recorded €200 million (US$257 million) more in revenues during the quarter if Indian security clearances had been granted. (See Nokia Reports Q2.)

If those revenues had fed through to NSN's top line, it would have recorded second-quarter sales of €3.24 billion ($4.17 billion).

However, the situation in India, coupled with a components shortage, held back NSN's revenues and has resulted in a less bullish outlook for the year. (See NSN's 2010 Confidence Slips.)

In the medium-term, Nokia Siemens expects the impending acquisition of Motorola Inc. (NYSE: MOT)'s wireless infrastructure business to improve its prospects in the Indian market. (See Moto Gives NSN a WiMax Option in India.)

Nokia has also been under pressure in India's mobile handset market. The Finnish firm's CEO, Olli-Pekka Kallasvuo, noted during today's conference call that Nokia came under intense pressure earlier this year from "the Chinese vendors," but that Nokia is responding and expects to be winning back market share in India during the second half of the year.

— Ray Le Maistre, International Managing Editor, Light Reading

digits 12/5/2012 | 4:29:10 PM
re: India Holdups Smack NSN's Q2

Imagine what kind of hit Huawei must be taking?

And Ericsson must be feeling the pinch of the slowdown in order processing because of the required security clearance. Let's see if it says anything in its Q2 call.

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