T-Mobile denies it’s ditching Nokia for Ericsson

In response to recent speculations, T-Mobile US has confirmed that it has no intention of discontinuing its procurement of network equipment from Nokia. This assertion directly counters predictions made by an industry analyst who suggested the telecom behemoth might transition to alternative suppliers.

“T-Mobile works with both Nokia and Ericsson, who have helped us over the years build the largest and fastest 5G network in the nation. We continue to work with them on ensuring our customers have the best mobile network experience,” a spokesperson for T-Mobile stated on Tuesday.

Nokia’s shares plummeted almost 12 percent, their largest drop in nearly a year, before settling around 7 percent down on the day. Following T-Mobile’s reassurances that it has no plans to drop Nokia, the company’s shares are up almost 4 percent in pre-market trading.

This downturn was triggered by comments from Earl Lum, president of EJL Wireless Research. In a LinkedIn post on Tuesday, Lum suggested that T-Mobile may opt for rival company Ericsson, which he claims offers superior technology and possibly more competitive pricing.

Nokia has witnessed a decline in its market share across the US in recent years. Lum previously predicted that AT&T would move away from Nokia before the telecom giant announced a substantial $14 billion contract with Ericsson last year to develop a modern “open radio access network.”

Meanwhile, Verizon – the other major US carrier – has also opted for Ericsson alongside equipment from Samsung to support its network infrastructure.

Adding further weight to the speculation, analysts at JPMorgan Chase said: “If Nokia were to lose T-Mobile US, it would mean that the technical turnaround promised by Nokia management in its wireless access business has failed.”

(Photo by Daniel Herron)

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Tags: 5G, connectivity, equipment, infrastructure, mobile, Networks, nokia, Operators, t-mobile, telecoms