Stock Market News

Nokia faces revenue hit as AT&T shifts to Open RAN technology

2023.12.04 23:13


© Reuters.

ESPOO – Nokia (HE:) is bracing for a potential decline in earnings after AT&T (NYSE:), one of its key customers, announced plans to transition toward Open Radio Access Network (Open RAN) with multiple vendors over the next five years. This shift could impact Nokia’s Mobile Networks’ net sales; AT&T accounted for 5-8% of Mobile Networks’ YTD net sales in 2023.

Despite this challenge, Nokia maintains a strong position in the global non-China 5G market, holding a 29% share as of the third quarter, according to the Dell (NYSE:)’Oro Report. This success is attributed to significant investments in research and development (R&D), particularly through Nokia Bell Labs’ innovations.

To counterbalance the expected loss from AT&T’s pivot, Nokia has planned cost reduction measures aimed at sustaining profitability. However, these measures might result in a delay in achieving their double-digit operating margin goals by up to two years.

AT&T will continue its relationship with Nokia for wireless and wireline services, including microwave radio links. NTT DOCOMO has also recently selected Nokia’s O-RAN solutions for deploying their commercial network, which underscores the Finnish company’s commitment to leading in R&D and Open RAN technology.

Nokia’s CEO Pekka Lundmark reaffirms the company’s strategic direction focused on growth and market leadership amid evolving network demands. He asserts that despite the current challenges, Nokia is dedicated to adapting and maintaining its course for expansion and profitability.

Further insights into Nokia’s strategies will be shared during the Investor Progress Update on December 12th in Espoo, Finland. Interested parties can join the event via webcast to learn about future paths for Mobile Networks and Cloud/Network Services as Nokia navigates through these industry changes.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 98,238.32 0.05%
ethereum
Ethereum (ETH) $ 3,437.00 1.46%
tether
Tether (USDT) $ 0.999578 0.02%
xrp
XRP (XRP) $ 2.25 2.29%
bnb
BNB (BNB) $ 707.05 0.57%
solana
Solana (SOL) $ 194.98 1.98%
dogecoin
Dogecoin (DOGE) $ 0.325485 2.50%
usd-coin
USDC (USDC) $ 1.00 0.02%
staked-ether
Lido Staked Ether (STETH) $ 3,433.27 1.46%
cardano
Cardano (ADA) $ 0.896005 3.25%
tron
TRON (TRX) $ 0.254539 0.79%
avalanche-2
Avalanche (AVAX) $ 39.23 5.02%
chainlink
Chainlink (LINK) $ 23.70 5.07%
the-open-network
Toncoin (TON) $ 5.87 0.18%
wrapped-steth
Wrapped stETH (WSTETH) $ 4,086.68 1.23%
shiba-inu
Shiba Inu (SHIB) $ 0.000022 4.01%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 98,206.31 0.48%
sui
Sui (SUI) $ 4.38 4.82%
hedera-hashgraph
Hedera (HBAR) $ 0.307748 1.20%
stellar
Stellar (XLM) $ 0.372746 4.61%
polkadot
Polkadot (DOT) $ 7.26 2.60%
weth
WETH (WETH) $ 3,439.48 1.45%
bitcoin-cash
Bitcoin Cash (BCH) $ 454.11 2.42%
bitget-token
Bitget Token (BGB) $ 6.28 21.06%
leo-token
LEO Token (LEO) $ 9.47 0.63%
hyperliquid
Hyperliquid (HYPE) $ 26.03 13.13%
litecoin
Litecoin (LTC) $ 107.60 0.85%
uniswap
Uniswap (UNI) $ 13.35 6.21%
pepe
Pepe (PEPE) $ 0.000018 5.34%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,630.17 1.48%
near
NEAR Protocol (NEAR) $ 5.28 4.95%
ethena-usde
Ethena USDe (USDE) $ 0.998981 0.04%
usds
USDS (USDS) $ 1.00 0.05%
aave
Aave (AAVE) $ 353.56 5.63%
aptos
Aptos (APT) $ 9.28 5.24%
internet-computer
Internet Computer (ICP) $ 10.82 4.81%
crypto-com-chain
Cronos (CRO) $ 0.154849 4.48%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.499764 3.98%
mantle
Mantle (MNT) $ 1.21 1.55%
vechain
VeChain (VET) $ 0.049491 5.27%
ethereum-classic
Ethereum Classic (ETC) $ 26.71 3.47%
render-token
Render (RENDER) $ 7.33 5.78%
whitebit
WhiteBIT Coin (WBT) $ 24.76 0.36%
bittensor
Bittensor (TAO) $ 480.48 4.40%
mantra-dao
MANTRA (OM) $ 3.70 2.65%
monero
Monero (XMR) $ 189.99 3.29%
dai
Dai (DAI) $ 1.00 0.05%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.31 4.93%
arbitrum
Arbitrum (ARB) $ 0.777938 3.83%
filecoin
Filecoin (FIL) $ 5.16 4.37%