HELSINKI – Nokia and Ericsson bound for Berlin

The CEOS of Nokia and Ericsson will be meeting German Chancellor Angela Merkel on Thursday (13 February).

With network security issues being so high on the agenda in Germany right now, the stakes are quite high. 

One could even assume that the talks may even have an effect on when Germany decides on its future 5G network provider, particularly as China’s Huawei Technologies had not been invited.

A precedent may come from France, which has chosen the Finnish Nokia and the Swedish Ericsson to deploy its 5G network. 

Last week, the US Attorney General, William Barr, suggested that the US should purchase a controlling stake both in Nokia and Ericsson in order to prevent Huawei’s market ambitions.

But times have been hard on both Nokia and Ericsson with both having been affected by the outbreak of the coronavirus in China.  On top of that, Nokia’s technological solutions have been criticised not least by Deutsche Telekom and its results have failed market expectations.

Recently, however, things have been on a slight upswing, particularly as the company has managed to stabilise things since last autumn.

This week, the merger between the third and fourth-largest mobile carriers in America, T-Mobile and Sprint, got the green light from a US district court judge. The decision means that Nokia’s $3.5 billion investment deal with T-Mobile can go ahead.

Nokia’s shares in the Helsinki Stock Exchange rose 6% this Tuesday. (Pekka Vänttinen | EURACTIV.com)

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