According to Wion News, Nokia is on the verge of clinching a significant contract to supply 5G radio equipment to Portuguese telecom operator MEO. This move marks a notable shift from MEO’s reliance on Huawei for its 2G, 3G, and 4G Radio Access Network (RAN) technology.
Key Takeaways
- Nokia is set to win a 5G radio equipment contract with Portugal’s MEO.
- This deal signifies a departure from MEO’s exclusive use of Huawei for 2G, 3G, and 4G RAN technology.
- The contract has been agreed upon but not yet signed, with an official announcement expected next month.
- MEO is one of Portugal’s leading mobile operators, currently owned by French company Altice.
- The global RAN market is expected to decline by 5-8% in 2024.
A Shift in Supplier
Nokia and MEO are preparing to collaborate on the sale of 5G radio equipment, marking a significant shift from MEO’s previous reliance on Huawei. For years, Huawei has been the sole supplier of 2G, 3G, and 4G RAN technology to MEO. This new partnership with Nokia is expected to replace Huawei in some key markets in Portugal.
Tommi Uitto, president of Nokia’s mobile networks, highlighted this development in an internal blog post, stating, “In recent years, MEO has been delivered in RAN exclusively by Huawei. We have now been chosen to replace Huawei in some of the key markets in Portugal.”
Market Dynamics
The global RAN market has been experiencing a decline in demand for new equipment from telecom carriers since last year. This downturn has affected major players like Nokia and its Swedish rival Ericsson, leading to significant job cuts. According to research firm Dell’Oro, the worldwide RAN market is expected to decline by 5-8% in 2024.
Despite being banned in the United States and several European countries due to security concerns, Huawei continues to maintain a significant presence in Europe and holds a substantial share of China’s booming telecom market.
Nokia’s Comeback
The potential agreement with MEO represents Nokia’s return to Portugal’s RAN market after losing its market share to Huawei several years ago. This contract could reestablish Nokia as a major player in the Portuguese telecom industry.
While the deal has been agreed upon, it has not yet been signed, and an official announcement is anticipated as early as next month. A Nokia spokesperson declined to comment on the matter, and MEO did not immediately respond to requests for comment.
Conclusion
Nokia’s impending contract with MEO is a significant development in the telecom industry, highlighting the shifting dynamics in the global RAN market. As Nokia prepares to replace Huawei in some key markets in Portugal, this deal could mark the beginning of a new era for both companies in the region.
