Nokia lost the Verizon contract to Samsung in the United States, according to Reuters, citing sources familiar with the matter. The South Korean giant was preferred over the Finnish company by the American operator. This decision concerns part of the contract for the supply of new 5G equipment, for an amount of some 6.6 billion dollars (5.6 billion euros). A setback for Nokia, but also for Ericsson, the two companies hoping to profit from the ousting of Huawei in the race for 5G in the United States.
For Samsung, far behind the four big telecom equipment manufacturers Huawei, Ericsson, Nokia and ZTE, this is obviously a great victory. South Korea currently only holds 3% of the global telecom equipment market (against 16% for Nokia, according to Dell’Oro Group).
42 contracts for Nokia in summer 2019
As a reminder, Samsung has announced a three-year $ 22 billion investment plan, particularly in 5G mobile technology. In January, the South Korean also made public the acquisition of TeleWorld Solutions (TWS), a service provider based in Virginia (United States) and specializing in optimization tests for telecom operators, for an unknown amount. An operation which aimed to help it gain a place in the highly competitive market promised by the new mobile telephony standard.
This does not mean, however, that the links are broken between Verizon and Nokia. The Finnish company, managed since August by Pekka Lundmark, is one of the American giant's official suppliers for 3G and 4G networks. Nokia is working with four US operators for these technologies. In Canada, it was also chosen with Ericsson by one of the industry leaders, Telus, for its 5G equipment.
But this failure shows once again how difficult Nokia is to win in the race to roll out 5G. The announcement of a layoff plan in France, despite the choice of the Iliad (Free) group to call on it to equip its entire network in France and Italy, does not bode well for the company. . It continues to lose market share according to the firm LightCounting Research. A year ago, however, it announced that it had signed 42 commercial contracts worldwide, ahead of Huawei at the time.