NOK - Nokia Corporation

NYSE - NYSE Delayed Price. Currency in USD
3.4800
0.0000 (0.00%)
At close: 4:02PM EST
Stock chart is not supported by your current browser
Previous Close3.4800
Open3.4800
Bid3.4600 x 317000
Ask3.4700 x 312500
Day's Range3.4500 - 3.5100
52 Week Range3.3300 - 6.6500
Volume15,556,696
Avg. Volume29,777,419
Market Cap19.564B
Beta (3Y Monthly)0.05
PE Ratio (TTM)N/A
EPS (TTM)-0.1920
Earnings DateN/A
Forward Dividend & Yield0.22 (6.44%)
Ex-Dividend Date2019-07-29
1y Target Est4.66
  • Is Nokia Corporation (NOK) Going To Burn These Hedge Funds ?
    Insider Monkey

    Is Nokia Corporation (NOK) Going To Burn These Hedge Funds ?

    How do we determine whether Nokia Corporation (NYSE:NOK) makes for a good investment at the moment? We analyze the sentiment of a select group of the very best investors in the world, who spend immense amounts of time and resources studying companies. They may not always be right (no one is), but data shows that […]

  • Nokia (NOK) Flat As Market Gains: What You Should Know
    Zacks

    Nokia (NOK) Flat As Market Gains: What You Should Know

    Nokia (NOK) closed at $3.48 in the latest trading session, marking no change from the prior day.

  • Those Cool New Nokia Phones Aren’t Made by Nokia
    InvestorPlace

    Those Cool New Nokia Phones Aren’t Made by Nokia

    Nostalgia is a powerful force when it comes to consumer trends. You need look no further than the resurgence of turntables and vinyl records at a time when everyone is streaming music on a monthly subscription plan to see this effect. Record sales are seeing double digit growth while CDs and digital download purchases slump.Source: RistoH / Shutterstock.com That same nostalgia is at play in the mobile phone industry. Motorola has resurrected the iconic Razr flip phone as a premium smartphone with a folding OLED display. BlackBerry still offers a handful of smartphones with physical keyboards through a licensing agreement with China's TCL. However, the most successful nostalgic mobile phone reboot belongs to Nokia (NYSE:NOK). * 7 Hot Stocks for 2020's Big Trends Under a 10-year licensing agreement signed in 2016 with HMD Global, the Nokia brand returned to mobile phones after a disastrous deal with Microsoft. Manufacturing is handled by a Foxconn spinoff called FIH Mobile. The partnership quickly bore fruit and the first of the new Nokia Android smartphones launched at Mobile World Congress in 2017. Also released were new versions of the company's iconic and hugely popular feature phones.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Reception to New Nokia PhonesBreaking into the smartphone business is difficult. The players are established, and trying to convince consumers to take a chance on a newcomer instead of buying one of those "it" phones from Apple (NASDAQ:AAPL) or Samsung is tough. Amazon (NASDAQ:AMZN) took a stab at it in 2014 with the Fire Phone and quickly gave up. Alphabet's (NASDAQ:GOOG, NASDAQ:GOOGL) Google has been trying hard with its Pixel smartphones, but after four generations and class-leading camera technology, the Google Pixel has failed to crack the market in a meaningful way.Nokia's new smartphones including the Nokia 6 were eagerly anticipated. By promising a combination of quality, the latest version of Android, and budget-friendly pricing, the new smartphones also appealed to international markets. With a Full HD display, Qualcomm (NASDAQ:QCOM) Snapdragon 430 processor and a 16MP camera, the $229.99 Nokia 6 was sold through Best Buy in the U.S., and then released globally. The company also released updates of the classic Nokia 105, 130 and 3310 feature phones.In 2017, it was estimated that 8.7 million Nokia smartphones were sold globally, along with an impressive 59.2 million feature phones. In comparison, roughly 1 million TCL Blackberry smartphones were sold that year.By Q2 2019, HMD (Nokia) was in the top 10 list of global smartphone vendors -- despite an overall 1.2% decline in smartphone sales -- with 4.8 million units shipped that quarter. Cashing in on NostalgiaOn the smartphone front, HMD is depending on the Nokia brand, combined with quality design and affordable pricing. But it's on the feature phone front where the company is really cashing in on consumer nostalgia. The updated Nokia 3310 was infamous for a battery that lasted forever and its virtual indestructibility. Last year, it was a reboot of the 8110 slider "banana phone" made famous by its appearance in The Matrix.A few months ago, the $99 Nokia 2720 flip phone was launched. It's updated with a 2.8-inch color display (plus a 1.3-inch external display for notifications), 27-day battery standby, and support for apps like Twitter (NYSE:TWTR), Facebook (NASDAQ:FB), and Google Maps.Also released in September was the Nokia 9 PureView, its most powerful Android smartphone yet, and one that leverages the company's famed camera capabilities. The new flagship smartphone (which goes for $449.99), features a 60MP and five camera PureView system with ZEISS optics. Does Nokia Actually Make Any Money From Phone Sales?The full financial terms of the licensing deal with HMD Global weren't revealed. However, InvestorPlace's Will Ashworth has been told that Nokia makes between $11 and $23 per smartphone in patent and licensing fees. Several years into the deal with HMD Global, whether the Nokia mobile phone revival will ultimately be a success is still up in the air. Either way, Nokia gets brand recognition from those cool retakes on its classic phones, while finally getting its foot in the door with Android smartphones. And it does so without risking its own money, instead making a small profit off each device sold.As of this writing, Brad Moon did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Hot Stocks for 2020's Big Trends * 7 Lumbering Large-Cap Stocks to Avoid * 5 ETFs for Oodles of Monthly Dividends The post Those Cool New Nokia Phones Arena€™t Made by Nokia appeared first on InvestorPlace.

  • Telecom Stock Roundup: T-Mobile's Nationwide 5G, Verizon 5G Edge Computing & More
    Zacks

    Telecom Stock Roundup: T-Mobile's Nationwide 5G, Verizon 5G Edge Computing & More

    While T-Mobile (TMUS) launches nationwide 5G network, Verizon (VZ) collaborates with Amazon's cloud computing arm, Amazon Web Services, for 5G edge computing.

  • The Zacks Analyst Blog Highlights: Nokia, Ericsson and T-Mobile US
    Zacks

    The Zacks Analyst Blog Highlights: Nokia, Ericsson and T-Mobile US

    The Zacks Analyst Blog Highlights: Nokia, Ericsson and T-Mobile US

  • U.S. Government to Tap Federal Funds to Thwart Huawei, ZTE
    Zacks

    U.S. Government to Tap Federal Funds to Thwart Huawei, ZTE

    The move is the latest in a string of concerted efforts by the U.S. government to dissuade other sovereign countries from using Huawei and ZTE gear to preempt alleged spying and siphoning of data.

  • Bloomberg

    One of Middle East’s Largest Startups Narrowly Averts Collapse

    (Bloomberg) -- Courier app Fetchr, once one of the Middle East’s largest startups, raised as much as $10 million in emergency funding to help avoid collapse.The Dubai-based company, which offers delivery and logistics services to e-commerce firms, is also in the process of securing as much as $25 million in additional funding to turn the company around, according to people with knowledge of the matter.Existing Fetchr investors, who had put up more than $50 million since the company was founded in 2012, will see the value of their shares diluted to almost zero, according to a letter to investors seen by Bloomberg and the people, who asked not to be identified because the matter is private.A spokesman for Fetchr confirmed the company had raised up to $10 million in financing from existing and new investors. He also said a majority of shareholders had approved a new financial and board structure.‘Rapidly Diminishing’Fetchr, once one of the rising stars of the Middle East’s nascent startup scene, was valued at almost $300 million during its latest fund-raising round in 2017.Hunting Unicorns in the Desert: The Sudden Rise of Arab StartupsSilicon Valley investors such as New Enterprise Associates, Nokia Oyj’s venture capital arm and Winklevoss Capital are among its backers, as well as prominent regional investors such as malls operator Majid Al Futtaim.The company last month warned investors that its “financial performance has been rapidly diminishing over the past twelve months” and it had considered a sale of the business or filing for bankruptcy, according to the letter.Fetchr’s rescue includes prominent businessmen such as Iyad Malas, former chief executive officer of Majid Al Futtaim, and Hussein Hachem, who led logistics firm Aramex for five years, said the Fetchr spokesman. As part of the plan, a search is underway to replace the CEO and one of the company’s two founders, Idriss Al Rifai, the people said. Fetchr’s other founder, Joy Ajlouny, left last year, the people said.Uber, Mastercard Deals Mark Arrival of Mideast Tech Sector Fetchr marketed itself as a tech company that delivers packages from mostly online retailers in six countries and almost 500 cities across the Middle East, using the customers’ phone as a GPS location.To contact the reporter on this story: Nicolas Parasie in Dubai at nparasie1@bloomberg.netTo contact the editors responsible for this story: Stefania Bianchi at sbianchi10@bloomberg.net, Claudia Maedler, Shaji MathewFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Bloomberg

    U.S. to Tap $60 Billion War Chest in Boon for Huawei Rivals

    (Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. The U.S. has been warning other countries not to buy telecommunications gear from China’s Huawei Technologies Co. and ZTE Corp. The government will soon put real money behind the effort.A new agency, called the U.S. International Development Finance Corporation, plans to tap some of its $60 billion budget to help developing countries and businesses purchase equipment from other companies.“The U.S. is very focused on ensuring there’s a viable alternative to Huawei and ZTE. We don’t want to be out there saying no. We want to be out there saying yes,” Adam Boehler, the first chief executive officer of the DFC, said in a recent interview.He declined to discuss specific company talks or how the money would be spent. However, the plans would be a welcome boost for Sweden’s Ericsson AB and Finland’s Nokia Oyj, which have struggled to compete with Huawei and ZTE equipment that’s often cheaper and at least as capable. The U.S. could bankroll Huawei alternatives through loans or loan guarantees to developing nations and companies, or even acquiring minority stakes in emerging makers of competing gear.Ericsson shares jumped as much as 4.2%, while Nokia gained as much as 3.2% following the story.The U.S. government is concerned about Chinese companies dominating the rollout of faster wireless networks known as 5G. The Trump administration has said Huawei and ZTE gear could be used for spying, an allegation the companies have denied. Many countries, including Germany and France, are reluctant to ban individual vendors like Huawei.How Huawei Became a Target for Governments: QuickTakeHuawei and ZTE “are state-owned enterprises or government-driven companies that subsidize their gear in some cases. The price is decent,” Boehler said. “Longer term, what is the cost of that? You shouldn’t think as a sovereign country from a short-term pricing perspective. Our focus is having people understand what they’re giving up and whether it’s worth it to save some money in the short term. It’s not.”The DFC was created last year to provide development financing to lower income and middle-income countries, which covers about half the world. It’s charged with “helping to advance U.S. foreign policy by countering the growing influence of authoritarian regimes” and expects to be fully authorized and funded by Congress in coming months.The DFC’s $60 billion investment cap is more than twice the size of its predecessor. The new agency can take minority equity stakes in companies, a new tool beyond existing capabilities that includes loans, loan guarantees and political risk insurance.Boehler wouldn’t discuss which DFC tools might be used to support purchases of non-Chinese telecom equipment. However, the Financial Times reported in October that U.S. government officials have suggested issuing credit to Huawei’s European rivals.Ericsson and Nokia didn’t respond to requests seeking comment.Another senior government official recently told Bloomberg News that the U.S. is considering funding mechanisms through the DFC that will decrease the cost of alternative commercial 5G gear. The person asked not to be identified discussing unannounced plans.The DFC is also considering whether to become a founding investor in a new technology infrastructure fund that will back emerging companies in 5G, artificial intelligence, quantum computing and other areas, Boehler said. The fund won’t invest in Chinese companies, he noted.“This could support bids on spectrum, investments in infrastructure or the development of a component for 5G,” he said. “We want to make sure that the next crop of companies, if they’re not U.S.-based, that they at least adhere to the principals we care about -- the rule of law and data protection.”“The real issue about Huawei is not China, it’s security of data,” he added. “We want to ensure that companies adhere to certain data-security standards and the protection people’s information.”Ethiopia is in the midst of privatizing its telecom industry and is auctioning spectrum and licenses. Vodacom Group Ltd., majority owned by British wireless giant Vodafone Group Plc, is planning a joint bid with Kenyan operator Safaricom Plc.“That is a live example that we can play in,” Boehler said. “There are no U.S. companies involved at this point, but the British are bidding.”(Updates with Ericsson and Nokia shares in fifth paragraph.)To contact the reporter on this story: Alistair Barr in San Francisco at abarr18@bloomberg.netTo contact the editors responsible for this story: Tom Giles at tgiles5@bloomberg.net, Molly Schuetz, Andrew PollackFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Nokia names veteran Sari Baldauf as group boss to take on 5G challenge
    Reuters

    Nokia names veteran Sari Baldauf as group boss to take on 5G challenge

    Taking on the top job at Nokia will make Baldauf, 64, one of the most high-profile female executives in the telecoms industry globally. Baldauf headed Nokia's networks unit - now the company's main business - between 1998 and 2005.

  • Reuters

    UPDATE 1-Nokia plans to appoint former networks head Sari Baldauf as chairman

    Telecoms equipment maker Nokia announced on Tuesday that it plans to appoint its former networks chief Sari Baldauf as chairman, succeeding Risto Siilasmaa who will step down after eight years in the job. The chairman is the top executive role at Nokia, which in October cut its outlook for this year and next because of the need to step up its investments in 5G - news that knocked a third off its share price. Baldauf, 64, will be one of the most high-profile female executives in the telecoms industry globally.

  • Nokia Aims to Settle EU Patent Licensing Row With Daimler
    Zacks

    Nokia Aims to Settle EU Patent Licensing Row With Daimler

    With the draft proposal, Nokia (NOK) is offering an olive branch to initiate constructive dialogue on the licensing issue for a workable solution for the overall improvement of the automotive sector.

  • Nokia says working to end patent licensing row with Daimler, others
    Reuters

    Nokia says working to end patent licensing row with Daimler, others

    Nokia said on Friday it was working to end a row with Germany's Daimler and other firms which have complained to the EU antitrust regulators about the level of fees charged for technology patents from the Finnish company. Sources familiar with the matter told Reuters the Finnish telecoms equipment maker had submitted a proposal for resolving the patent licensing fee row, but did not give details. The offer could pre-empt any move by the European Commission to open an investigation and remove the threat of fines if the firm was found to be abusing its position.

  • Nokia operations chief to leave in management reshuffle
    Reuters

    Nokia operations chief to leave in management reshuffle

    Erlemeier, who has been with the company for 25 years and served as chief operations officer for the past two years, was responsible for global operations and procurement, the overall operating model and implementation of cost savings, among other functions. Last month Nokia cut its outlook for this year and next because of the need to step up investment in 5G, sending its share price down by a third.

  • FCC Bans Subsidies for Huawei, ZTE Kit: Will Others Benefit?
    Zacks

    FCC Bans Subsidies for Huawei, ZTE Kit: Will Others Benefit?

    The turn of events offers a golden opportunity to other telecom equipment firms to fill the void and strengthen their position in the market, thereby augmenting top-line growth.

  • If You Own Nokia Stock, Prepare for More of the Same Disappointments
    InvestorPlace

    If You Own Nokia Stock, Prepare for More of the Same Disappointments

    I can see why investors would be tempted to buy the dip in Nokia (NYSE:NOK). The sell-off since a disastrous third-quarter report has brought valuation back in line. The 5G tailwind that attracted investors to Nokia stock still exists. Yes, the news in the Q3 release was disappointing -- but a lower price, in theory, could offset some of that disappointment.Source: RistoH / Shutterstock.com That said, the case on paper has a very big problem in practice. Nokia stock simply can't be trusted at this point.The 5G tailwind was supposed to benefit results this year and next -- not in 2021, as is now hoped. Market share is eroding. On paper, NOK stock does look cheap -- but looking at the actual business, it seems increasingly clear that it should be.InvestorPlace - Stock Market News, Stock Advice & Trading Tips 5G and Nokia StockThe Q3 earnings report unquestionably was disappointing. NOK stock fell nearly 24%, its largest loss in 19 years. Interestingly, the quarter itself came in ahead of analyst estimates. But it was guidance that led to the enormous sell-off. * 7 Marijuana Penny Stocks That Have Ridiculous Possibilities Heading into the quarter, Nokia had guided for 2019 adjusted earnings per share of €0.25-€0.29, which was then set to grow sharply to €0.37-€0.42 in 2020. The outlook for both years was slashed after Q3.For 2019, Nokia now sees adjusted EPS of €0.18-€0.24. That's actually not that big a decline from original expectations for this year, particularly given that Nokia already had said after the second quarter that there were risks to meeting 2019 guidance. But in 2020, Nokia now sees adjusted EPS of just €0.20-€0.30. Adjusted operating margins are now expected at 8-11%, against a prior 12-16%.The culprit was the company's networks business and particularly its 5G portfolio. Those products were supposed to drive the growth and margin expansion Nokia projected, but that's no longer the case. Nokia clearly is losing market share to Scandinavian rival Ericsson (NASDAQ:ERIC) as both companies try to take advantage of the political pressure being applied to Chinese rival Huawei.As a result, Nokia is spending behind the business to try and lower prices and better compete with Ericsson, in particular. That rival has opted to lower upfront pricing in hopes of making up the profit through higher-margin service contracts. Nokia apparently has to match that pricing -- but that's not the only issue here. Management and Execution ProblemsI've long been skeptical of the turnaround case for Nokia stock for two core reasons. As I detailed earlier this year, this is a company with a long history of overpromising and underdelivering.Last month's news is just the latest in a long history of disappointments. And in that context, it's hard to trust the new guidance going forward. Why is this time different?Certainly, management isn't inspiring any confidence at this point. CEO Rajeev Suri told Bloomberg in an interview that part of his company's problem was that its acquisition of Alcatel-Lucent created "more work," as the company had to migrate all of the legacy Alcatel-Lucent products to the Nokia nameplate. But that acquisition was completed three years ago, and certainly, Suri was aware of that issue when the company reiterated guidance in August.This simply doesn't seem like a management team on top of its business. It's losing to Ericsson. It was just six months ago that Nokia was talking up the fact that it hadn't lost a single 4G customer in the transition to 5G, and now it's overhauling its go-to-market strategy. As Will Healy noted on this site, the company reportedly is losing Telecom Italia, with that customer going with Huawei and Ericsson.From a broad standpoint, there's another question. If Nokia can't drive growth now, when can it? Huawei has been hampered, if not crippled, by security concerns. There's really no other competitor besides Ericsson. And yet Nokia isn't expecting much in the way of growth, even if guidance is met this time around. Cheap Isn't Enough for Nokia StockTo be sure, NOK stock is cheap. The midpoint of updated 2020 EPS guidance, €0.25, translates to $0.277. That, in turn, suggests just a 12x forward multiple.And so, again, there's an aspect of Nokia stock that is tempting. The dividend has been cut to fund 5G investments, but management expects the payout to return at some point. 5G growth should continue. Huawei's competitive positioning is at long-term risk.But that's not enough -- and it's not as if other networking plays don't have bull cases themselves. Industry leader Cisco Systems (NASDAQ:CSCO) has sold off. Arista Networks (NYSE:ANET) plunged after earnings, and has its own "buy the dip" case. Juniper Networks (NYSE:JNPR) has shown long-awaited signs of life. Investors willing to step in to the sector have options beyond NOK stock.The biggest issue here, however, is company-specific. Yes, Nokia has an opportunity for growth. But it also has a stock price at a six-year low because it hasn't capitalized on past opportunities. It's exceedingly difficult coming out of the Q3 release to believe that this time is different.That's why the NOK stock price fell 24% after earnings. It's why it's kept falling. Investors don't trust Nokia, or Nokia stock. It's difficult to blame them.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Marijuana Penny Stocks That Have Ridiculous Possibilities * 7 High-Yield ETFs to Buy Now * 4 Dow Jones Industrial Average Stocks to Sell The post If You Own Nokia Stock, Prepare for More of the Same Disappointments appeared first on InvestorPlace.

  • EU Poised to Send Warning to China on 5G
    Bloomberg

    EU Poised to Send Warning to China on 5G

    (Bloomberg) -- The European Union is poised to say potential 5G suppliers will be evaluated based on their home country’s laws, a stance that could exclude Chinese businesses from some lucrative contracts for the advanced telecommunications networks.“Factors, such as the legal and policy framework to which suppliers may be subject to in third countries, should be considered,” according to a draft of a joint statement obtained by Bloomberg and planned for release next month. The document is due to be approved on an informal basis this week by government envoys with formal sign off by ministers due in December, and the wording is subject to changes.The EU statement outlines the bloc’s position following a risk assessment that described a nightmare scenario where hackers or hostile states could take control of everything from electricity grids to police communications. It warned against reliance on suppliers from countries with non-democratic systems of government.U.S. and European officials have repeatedly flagged concerns about partnering with Chinese equipment makers, such as Huawei Technologies Co., for 5G networks. Chinese companies are obliged to assist the country’s national intelligence organization in their investigations, though Chinese officials and Huawei have said there are exceptions to those rules and the company wouldn’t necessarily be forced to do so.U.S. Secretary of State Mike Pompeo tweeted on Tuesday that the EU’s risk assessment report highlights how nations should install 5G equipment and software only from companies that won’t threaten their security, privacy, intellectual property, or human rights.Key parts of the next-generation infrastructure “such as components critical for national security, will only be sourced from trustworthy parties,” according to the draft statement of EU governments. The 5G build out should be “firmly grounded in the core values of the EU, such as human rights and fundamental freedoms, rule of law, protection of privacy, personal data and intellectual property, in the commitment to transparency.”A spokesman for the EU’s Council declined to comment on the content of the draft communique.German StanceEuropean countries have the ultimate say whether or not to ban a supplier from their national networks for security reasons. German Chancellor Angela Merkel has decided to let Huawei supply some gear as long as the company fulfills certain security standards, despite intense pressure from her own party for an outright ban.The draft also stresses “the need to diversify suppliers in order to avoid or limit the creation of a major dependency on a single supplier” as well as “the importance of European technological sovereignty and promoting globally the EU approach to cyber security.”Besides Huawei, Europe’s Nokia Oyj and Ericsson AB supply 5G equipment.(Updates with U.S. Secretary of State’s tweet in fifth paragraph.)To contact the reporters on this story: Nikos Chrysoloras in Brussels at nchrysoloras@bloomberg.net;Natalia Drozdiak in Brussels at ndrozdiak1@bloomberg.netTo contact the editors responsible for this story: Chad Thomas at cthomas16@bloomberg.net, ;Giles Turner at gturner35@bloomberg.net, Amy Thomson, Richard BravoFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Did You Manage To Avoid Nokia's (HEL:NOKIA) Painful 52% Share Price Drop?
    Simply Wall St.

    Did You Manage To Avoid Nokia's (HEL:NOKIA) Painful 52% Share Price Drop?

    The main aim of stock picking is to find the market-beating stocks. But every investor is virtually certain to have...

  • InterDigital Invests $50K for Mobile Edge Computing Research
    Zacks

    InterDigital Invests $50K for Mobile Edge Computing Research

    InterDigital (IDCC) is committed to fostering edge computing research and development opportunities to boost future technologies in IT and telecommunications industry.

  • Huawei founder sees U.S. pressure as just another test to endure
    MarketWatch

    Huawei founder sees U.S. pressure as just another test to endure

    The entrepreneur at the center of the Trump administration’s battle with Beijing over technology is a survivor of competition that drove Western rivals out of the market, brushes with financial disaster and job stress so severe he contemplated suicide.

  • GuruFocus.com

    Stocks That Fell to 3-Year Lows in the Week of Nov. 8

    Occidental Petroleum, Expedia, Nokia and Diamondback Energy present buying opportunities Continue reading...

  • Barrons.com

    Tesla’s First-Mover Advantage Over Rival Car Makers Should Only Get Bigger

    Let’s go back in time to June 2008, when Apple introduced the iPhone 3G. What we did not know at the time was that Nokia was actually the largest dumb phone maker and that Apple was about to become the largest smartphone maker—a crucially important nuance. Nokia should have looked at the iPhone and thanked Apple for showing the future of the phone—then gone on to develop its own smartphone.

  • Telecom Italia Likely to Exclude Nokia From Network Upgrade
    Bloomberg

    Telecom Italia Likely to Exclude Nokia From Network Upgrade

    (Bloomberg) -- Telecom Italia SpA will probably exclude Nokia Oyj from a mobile network upgrade and award the business to Ericsson AB and Huawei Technologies Co., according to people familiar with the matter.Managers at Italy’s biggest phone carrier recently told Nokia they’re concerned the equipment maker is lagging behind rivals on 5G, and that it will likely reduce its mobile network suppliers to two from three, said the people, who asked not to be named because the discussions are private.Telecom Italia is seeking tenders for a three-year project that may be worth about 600 million euros ($665 million), and will decide on the award as soon as this month, the people said. No final decision has been made, and Nokia could still play a role as a mobile network supplier to Telecom Italia, alongside Ericsson and Huawei, the people said.A spokesman for Telecom Italia declined to comment. A spokeswoman for Nokia declined to comment on commercial negotiations with customers, and said the company continues to see solid momentum in its 5G business. It has 48 commercial contracts and 15 live networks for the technology, including some of the world’s largest networks, she said.Losing the business from Telecom Italia would be a setback for Nokia, which now supplies about 30% of the carrier’s wireless gear and employs about 1,400 workers in the country. The Finnish company is struggling to keep pace with its main rivals on 5G and last month cut its profit expectations and suspended its dividend to boost research and development on the technology. Nokia shares fell 0.5% as of 10:04 a.m. in Helsinki. While the loss may be another sign that Nokia is stumbling on 5G, the symbolic significance of the loss may outweigh the direct financial hit -- the contract is small relative to the Finnish company’s 11.3 billion euros of overall mobile equipment and service sales in 2018.The tender is for work to improve Telecom Italia’s 15,000 radio access sites, including a buildout of 5G services at about 5,000 sites, the people said. Ericsson currently supplies about 40% of the carrier’s mobile equipment, and Huawei accounts for about 25%, they said.Telecom Italia Chief Executive Officer Luigi Gubitosi expects the move will help the company save money by enabling it to extract lower prices from its two suppliers, the people said. This can help it tackle its 29 billion-euro debt pile, one of the biggest in the European telecommunications industry.(Updates with Nokia shares in fifth paragraph)To contact the reporters on this story: Daniele Lepido in Milan at dlepido1@bloomberg.net;Niclas Rolander in Stockholm at nrolander@bloomberg.netTo contact the editors responsible for this story: Rebecca Penty at rpenty@bloomberg.net, Jennifer RyanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Will the Microsoft-Nokia Alliance Work Out This Time?
    Market Realist

    Will the Microsoft-Nokia Alliance Work Out This Time?

    Yesterday, Nokia announced a partnership with Microsoft (MSFT) to offer digital transformation to enterprises and telecom providers.