Nokia competes with Nokia by securing Verizon 5G deal

Stockholm (Reuters) – Finnish telecom firm Nokia has received a setback from a source after it was confirmed that it had lost to Samsung Electronics on part of a contract to supply new 5G equipment to Verizon in the United States.

With the win of this $ 6.64 billion contract, Samsung has strengthened its position as a challenger to Nokia and its Nordic rival Ericsson’s dominance in selling telecom gear, with China’s Huawei getting 5G contracts in the United States Was barred from bidding for.

Nokia’s loss came in August after its new chief executive, Pucca Lundmark, but the source said negotiations were going on before he took office.

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A Nokia spokesperson declined to comment on the loss.

The anchor Security The last Change Change %
VZ VERIZON Communications Inc 60.48 -0.13 -0.21%
NOK Nokia Corp. 4.48 -0.05 -1.10%

“We play a key role in enabling Verizon’s 3G and 4G networks and continue to work with them to accelerate innovation in 5G,” she said. “They remain the top three global customers.”

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Major telecom firms such as Verizon use a number of suppliers to manufacture different parts of the network, which account for a large portion of the cost of the radio contract.

People wear protective face masks outside a Verizon store in Midtown, New York City. (Photo by Noam Gallai / Getty Images)

Libarm analyst Janardan Menon said contract losses could affect Nokia’s ability to invest technology in its competition at the same rate, and rival Ericsson might also have increased its stake in Verizon. Liberam has a “hold” rating on Nokia shares.

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An Ericsson spokesperson declined to comment.

Nokia shares were down 1% in morning trading.

Shares fell in July when brokerage JP Morgan said there was a real risk Verizon would reduce its dependence on Nokia as its primary RAN (radio access network) supplier would move forward and shift to Samsung.

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(Reporting by Supantha Mukherjee in Stockholm and Anne Kouraren in Helsinki; Editing by Keating Weisz)