Long-Term Demand for Network Equipment Offers Some Support for Nokia’s Business

Nokia’s biggest business supplies radio access network equipment and services to telecom carriers to build public wireless networks. Nokia has lost some market share to Ericsson in recent years, but it should still experience tailwinds over the next few years from the global 5G upgrade cycle. It also benefits from the explicit or implicit exclusion of Huawei and ZTE equipment in many Western markets, as governments consider banning the Chinese vendors. In addition, carriers typically source from multiple vendors, so Ericsson's strength does not necessarily come at Nokia's expense.