By Dominic Chopping
Nokia will deploy a new network for Deutsche Telekom in Germany using technology that allows equipment from competing suppliers to be used in certain parts of the network.
The so-called Open RAN network will replace gear from an incumbent vendor, with work already underway, it said Tuesday.
“The deal marks a significant return for Nokia into Deutsche Telekom’s commercial network,” Nokia said in a statement.
UBS analyst Francois-Xavier Bouvignies said in a note that he believes the incumbent vendor might be Ericsson or Huawei. “We also believe this [deal] could bring some relief for Nokia after last week’s announcement in terms of product competitiveness.”
Nokia last week lost out to Swedish rival Ericsson on a major new Open RAN network contract from AT&T, dealing a blow to Nokia’s profitability targets, cutting into its future revenue and sending its shares sharply lower. The deal moves most of AT&T’s new purchases of certain cell-tower equipment to Ericsson, replacing existing gear from Nokia in many markets.
Nokia said the Deutsche Telekom deal will see it partner with Fujitsu.
Financial terms weren’t disclosed.
Write to Dominic Chopping at [email protected]
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