Nokia has firmly returned to the 5G market

27. 07. 2021 Tuesday / By: Robert Denes / Industrial / Exact time: BST / Print this page

S TOCKHOLM / HELSINKI (Reuters) - The shift in geopolitics and the sharp range of cost cuts have firmly pushed Nokia firmly back into the global 5G rollout competition, just a year after Pekka Lundmark became CEO of the Finnish parent company.

Considered to be at a disadvantage in 5G competition, after betting on bad types of chips and losing a multi-billion Verizon contract, Nokia has recently gained more and more ground over rival Ericsson, even as both benefit from U.S. pressure on European governments to Chinese Huawei.

Pekka Lundmark warned of a challenging transition year in February, but two good quarters revived hope for a turnaround, and Nokia said earlier this month it would raise its full-year outlook when reporting second-quarter results. on Thursday.

“The drastic changes and improvements in performance under Pekka’s care are clearly evident,” said Paolo Pescatore, an analyst at PP Foresight. "The capabilities of 5G, the misfortunes of others and the focus on key products have helped revitalize the business."

Nokia has also invested significant sums in Reefshark’s chipset, reducing the final cost of 5G equipment and giving its business units more autonomy over where to compete. European governments have long tightened the role of Chinese companies in 5G networks in the wake of Washington’s diplomatic pressure to claim that Beijing could use Huawei equipment for espionage. Huawei has repeatedly denied that it poses a national security risk.

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