Finnish telecommunications equipment manufacturer Nokia announced today that it has been awarded a contract by BT Group to supply 5G networks in the UK, replacing China’s Huawei as BT’s largest equipment supplier.
This is the first contract with Nokia in the UK since Prime Minister Boris Johnson’s July order banning mobile providers from using Huawei products in the construction of new 5G networks.
Under the BT contract, Nokia will provide base stations and other network equipment to provide customers with ultra-fast 5G networks; Nokia equipment will also be used on BT’s existing 2G and 4G networks. However, BT told AFP that they will also use products from other suppliers to replace all Huawei equipment.
The UK government’s ban is based on national security concerns, forcing mobile providers to remove “high-risk suppliers” from 2021, a major opportunity for Huawei’s two main competitors in the 5G market, Nokia and Sweden’s Ericsson.
Domestic operators in the UK must remove all Huawei devices from their 5G networks by 2027, a transition that BT has previously said will cost 500 million pounds.
The UK government’s order to ban Huawei is an obvious shot in the arm for Nokia and Ericsson, but industry observers warn that market demand continues to increase and it may not be easy to fill the void left by Huawei, the industry leader.
Nokia lowered its 2020 profit estimates last year in the face of fierce competition in the 5G network market, but recent earnings reports show an increase in revenue, and new CEO Pekka Lundmark is expected to reorganize the company to try to recapture some of the lost ground in the 5G battle.
Recent Comments