Nokia takes a hit as Samsung secures Verizon 5G deal

Finnish telecom firm Nokia has suffered a setback after a source close to the matter confirmed it had lost out to Samsung Electronics on a part of the contract to supply new 5G equipment to Verizon in the United States.

Curated via Twitter from Reuters Tech News’s twitter account….

FILE PHOTO: Visitors gather outside the Nokia booth at the Mobile World Congress in Barcelona, Spain, February 26, 2019. With this $6. 64 billion contract win, Samsung has reinforced its position as a challenger to the dominance of Nokia and its Nordic rival Ericsson (ERICb.

The shares had fallen in July when brokerage JPMorgan said there was a real risk Verizon would reduce its dependence on Nokia as its primary RAN (radio access network) supplier going forward and shift towards Samsung.

A Nokia spokeswoman declined to comment on the loss. “We play a critical role in enabling Verizon’s 3G and 4G networks and continue to work with them to accelerate innovation in 5G,” she said. “They remain a top three global customer.

Liberum analyst Janardan Menon said the contract loss could impact Nokia’s ability to invest in technology at the same rate at its competition, and rival Ericsson might have even increased its share at Verizon.

The loss for Nokia comes after its new Chief Executive Pekka Lundmark took the top job in August, but the source said negotiations were going on before he took charge.

Major telecom firms such as Verizon uses several suppliers for building various parts of a network with radio contracts accounting for a big part of the spending.

Link to original article….

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