Business Strategy and Outlook
| Matthew Dolgin |Nokia’s biggest business supplies radio access network equipment and services to telecom carriers to build public wireless networks. The business is historically cyclical, but the world is currently in the early stages of the 5G upgrade cycle. Nokia has lost some market share to Ericsson in recent years, but it is still seeing its business rise due to 5G. 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 rise is not a zero-sum game in any event.