Nokia Siemens Networks (NSN) – the world’s second-largest mobile network vendor – yesterday reported a poor second quarter, posting a 21.3 percent year-on-year fall in revenues to EUR3.2 billion. That followed a 12.1 percent year-on-year sales decline in the first quarter. Sales only increased in one geographic market, North America, but that region is also its smallest market by sales. Sales in Asia Pacific fell almost 40 percent. NSN had a second quarter operating loss of EUR188 million compared with an operating loss of EUR47 million in the second quarter 2008, with an operating margin of -5.9 percent. Despite the downbeat results, the company talked up its growth in the services (outsourcing) market, with its Services division now generating 45 percent of the company’s total revenues. Highlighting such success, NSN announced a five-year managed services deal with Brazilian fixed and mobile operator Oi, worth EUR1.1 billion.

NSN reiterated its previous forecast that the mobile infrastructure and related services market will decline approximately 10 percent this year from 2008 levels, but warned that its market share will now fall “moderately” (compared to an earlier target of remaining constant). The vendor currently harbours ambitions to strengthen its market presence, particularly in the US, by buying the majority of Nortel’s mobile assets for at least US$650 million. An auction is due to be held next week.