Nokia opens new tab and will supply 5G radio equipment to Portuguese telecoms operator MEO, according to an internal Nokia blog post and two sources
Nokia is poised to secure the contract even though MEO has exclusively relied on Huawei for its 2G, 3G, and 4G Radio Access Network (RAN) equipment.
According to the sources, the contract has been agreed upon but has yet to be completed, and an announcement is likely as early as next month.
Altice, a French company, has acquired MEO, formerly known as Telecom Portugal, one of the foremost mobile service providers in Portugal.
“In recent years, Huawei has been the sole provider of MEO in RAN.” Thus, Huawei held an exacting one hundred percent market share in 2G/3G/4G.
“As of now, we have been chosen to replace Huawei in several key markets in Portugal,” Nokia’s mobile network president, Tommi Uitto, wrote in an internal blog.
Both Huawei and a Nokia spokesperson declined to comment. The MEO has not responded to the request for comment at this time.
RAN equipment has produced the majority of telecom sales for businesses like Huawei, Nokia, and its Swedish rival Ericsson (ERICb.ST).
However, Nokia and Ericsson have been forced to lay off thousands of employees due to a decline in demand for new equipment from operators since last year.
According to the research firm Dell’Oro, the global RAN market will experience a decline of 5-8% in 2024.
Although prohibited in the United States and several European countries due to security concerns, Huawei continues to maintain a significant presence in Europe and a substantial portion of the rapidly expanding Chinese telecom market.
Uitto wrote on an internal blog that the agreement would signify Nokia’s reentry into Portugal’s RAN market, where it had lost market share to Huawei many years ago and has not supplied RAN to communications service providers in the country since then.