Nokia loses a 5G contract with Verizon, the title falls on the stock market – teller report

by Supantha Mukherjee

STOCKHOLM (Reuters) – Nokia has lost an important contract with US telecoms operator Verizon to supply equipment for fifth generation (5G) mobile telephony to the United States, a source familiar with the matter has confirmed. lowers the title of the Finnish group on the stock market.

The contract, worth $ 6.64 billion (5.61 billion euros), was won by Samsung Electronics, which announced it on Monday. The South Korean group has become over time a serious competitor of the three main global telecoms equipment manufacturers Nokia, the Swedish Ericsson and the Chinese Huawei.

Huawei, under US sanctions, is banned from bidding on 5G in the United States.

Asked, a spokesperson for Nokia declined to comment.

"We play a vital role in building Verizon's 3G and 4G networks and we continue to work with the operator to accelerate innovation in 5G," she simply said.

The large telecom operators call on several equipment manufacturers to build the different parts of their network.

Janardan Menon, analyst at Liberum, believes that the loss of this contract could prevent Nokia from investing in this technology at the same rate as its competitors. He adds that this could allow Ericsson to increase the share of its equipment at Verizon.

An Ericsson spokesperson did not comment on the matter.

Nokia shares fell nearly 3.48% to 3.63 euros a few minutes before the close of the stock market. The title had already declined in July after the announcement by JPMorgan of Verizon's desire to reduce its dependence on Nokia on radio equipment to the benefit of Samsung.

(Supantha Mukherjee in Stockholm and Anne Kauraren in Helsinki; French version Claude Chendjou, edited by Jean-Michel Bélot)

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