- Nokia is poised to secure a contract to supply 5G radio equipment to Portuguese telecom operator MEO, replacing Huawei as the key supplier.
- The deal, which marks Nokia’s return to Portugal’s RAN market, is expected to be announced next month, according to sources familiar with the matter.
- This contract comes amid a global decline in demand for telecom equipment and follows Huawei’s ban in the US and several European countries over security concerns.
Nokia is set to secure a significant contract to supply 5G radio equipment to Portuguese telecom operator MEO, replacing Huawei as the primary supplier. This deal, expected to be announced next month, marks Nokia’s return to Portugal’s Radio Access Network (RAN) market after years of absence. The agreement comes amidst a global decline in demand for telecom equipment and heightened scrutiny of Huawei in several countries.
Nokia’s market re-entry
The official announcement of this deal is anticipated to come next month.This contract signifies Nokia’s return to Portugal’s Radio Access Network (RAN) market, a market they lost to Huawei many years ago. According to an internal blog by Tommi Uitto, president of Nokia’s mobile networks, this deal will see Nokia replacing Huawei in some key markets in Portugal.
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Shift in MEO’s supplier strategy
Historically, MEO, formerly known as Telecom Portugal and now owned by France’s Altice, has relied exclusively on Huawei for its 2G, 3G, and 4G RAN equipment. This new agreement with Nokia marks a significant shift in their supplier strategy, indicating a move away from reliance on Huawei.
Industry context and responses
The global RAN market is expected to decline by 5-8% in 2024, according to Dell’Oro research firm. This decline has led to job cuts at both Nokia and Ericsson. Despite facing bans in the US and several European countries over security concerns, Huawei continues to maintain a significant presence in Europe and holds a major market share in China. Neither Nokia, Huawei, nor MEO provided immediate comments on the deal.
