Revenue Pressure at Nokia Has Been Slow to Recede, but We Expect Modest Growth to Return

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 benefit from a continuing 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.