2023-12-05 17:11:00
This is a big setback for Nokia. Ericsson shares rose on the Stockholm Stock Exchange on Tuesday following the Swedish telecoms equipment manufacturer won a contract with the American AT&T, to the detriment of its great Finnish rival.
AT&T announced on Monday that it had chosen Ericsson to build a telecommunications network which uses only Open RAN (Open Radio Access Network) technology and which will cover 70% of its wireless traffic in the United States by the end of 2026. At 8:51 a.m., Ericsson shares gained 8.73% and were heading towards their best performance since October 2020. Nokia, on the other hand, saw its shares lose 7.61% following hitting a three-year low earlier in the session.
” Hard blow “
According to Nokia, the contract with AT&T represented 5% to 8% of its turnover for 2023. The group therefore anticipates an impact on its operating margin objective.
“It’s a hard blow for Nokia in the particularly important region of North America », commented Atte Riikola, analyst at Inderes. The analyst estimates that revenues from Nokia from the contract with AT&T amount to 500-800 million euros in 2023.
(with Archyde.com)
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