Nokia shares are trading lower Tuesday, amid news the Finnish telecoms equipment maker has signed a deal with T-Mobile to provide tech for the US mobile carrier’s 5G upgrade plans. It’s a multi-year 5G network gear supply deal and the biggest one so far for the latest wireless upgrade.
By 0940 BST, Nokia shares were 1.54% lower at €4.66. T-Mobile shares, meanwhile, ended the US Monday trading session, 0.35% higher at $59.82.
Nokia and T-Mobile announced Monday an agreement between the two firms worth $3.5 billion. T-Mobile has selected Nokia to be its main supplier for 5G telecoms and wireless equipment, for its global upgrade from a 4G to a 5G network.
“Nokia and T-Mobile will advance the large-scale deployment of 5G services throughout the United States,” said Ashish Chowdhary, Chief Customer Operations Officer, Nokia.
“This is a testament to our companies’ strong and productive working relationship, one which has produced several important technological milestones in recent months, and which now allows us to make 5G a commercial reality,” Chowdary added.
The deal also reflects T-Mobile’s commitment to being among the first network operators to take a major step into the precision of a national 5G network.
“We are all in on 5G,” said Neville Ray, Chief Technology Officer at T-Mobile. “Every dollar we spend is a 5G dollar, and our agreement with Nokia underscores the kind of investment we’re making to bring customers a mobile, nationwide 5G network.”
Important deal for Nokia
The deal is a key one for the Finnish network equipment maker. Nokia’s fortunes have been on a downward turn in recent years, as demand for 4G network equipment has slowed.
The latest 5G network promises to deliver even faster speeds as well as a more reliable user experience.
Shareholders will likely be hoping that this represents the beginning of an upsurge in demand for 5G network gear from the tech group.