Nokia Siemens says US to drive 2011 growth

A "sober, solid" recovery is underway in the telecom market and the United States will remain the driver of growth next year, the chief marketing officer of telecom gear maker Nokia Siemens Networks said.

Bosco Novak, who manages NSN's relationships with major operators like Vodafone and France Telecom, told Reuters he didn't expect any major changes to capital expenditure trends next year.

Telecom operators are practising "conscious spending" on their networks, he said in an interview on the sidelines of the Broadband World Forum in Paris.

"We don't see anyone saying they will spend a lot more but we don't see people saying they're going to cut everything," he said.

"I think that compared to a year ago, there is a much more stable confidence there. This is a sober, solid recovery. Not too hyper but also clearly also not depressed."

Asked whether the US would remain the driver of growth next year as it was this year, he said: "Yes, I don't see any other region that would take that role from them.

"Demand in the US is being driven by smartphones...they have become a must-have item for the middle-class consumer."

Novak acknowledged that this was an issue for NSN, given that the US was its smallest region by revenue this year. Telecom gear makers with a strong US presence such as Alcatel-Lucent could benefit more as operators like AT&T and Verizon ramp up spending next year.

But Novak said NSN's recent deal to buy Motorola's mobile operations for $1.2 billion would allow it to expand its presence in the US, taking it from sixth to third place in that market.

Nokia Siemens Networks, which is a 50-50 venture of Nokia and Siemens, posted a third-quarter operating loss on Oct. 21, missing forecasts that the unit would turn out a small profit for the period.

The company has struggled to make a profit since its 2007 start amid falling operator spending and fierce pricing from Asian rivals Huawei and ZTE.