Nokia Explores Merger, Sales Opportunities
Nokia is the second largest maker of 5G networking equipment
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Nokia is exploring merger possibilities, asset sales, and other moves, Bloomberg reported Wednesday. Why I spit out my coffee reading that: Nokia is one of the top three manufacturers of 5G networking equipment. The H1 2019 breakdown, per Dell'Oro Group:
- Huawei captured 28.1% of telecom equipment market share.
- Nokia had 15.7%.
- Ericsson, 13.1%.
China's Huawei widened its lead over Finland's Nokia and Sweden's Ericsson by selling soup-to-nuts networking solutions on the cheap. Despite the U.S.' best efforts, it doesn't seem like Huawei will lose its pole position any time soon.
One possible future for Nokia is a merger with Nordic frenemy Ericsson. But that would invite antitrust scrutiny. Tech companies, wireless carriers, and Waystar Royco could also be potential buyers.
Big picture: Maybe a rising 5G tide doesn't lift all boats. Just as countries begin wide-scale 5G rollouts, the already narrow telco equipment field could shrink even more.
Keep up with the innovative tech transforming business
Tech Brew keeps business leaders up-to-date on the latest innovations, automation advances, policy shifts, and more, so they can make informed decisions about tech.