China's Huawei Technologies took the No. 2 position in the ailing mobile network gear market in the third quarter, almost doubling its market share from a year ago, and bypassing Nokia Siemens.

Sweden's Ericsson continues to lead the market with a 32 percent share, researcher Dell'Oro said on Friday.

Dell'Oro said Huawei's market share rose to 20 percent from 11 percent a year ago, while the market share of Nokia Siemens Networks dropped to just below Huawei.

The telecom equipment market has seen cut-throat competition for new business during the past few years, driven by Asian vendors, and the outlook remains tough.

(Reporting by Tarmo Virki; editing by Simon Jessop)