NOKIA.HE - Nokia Corporation

Helsinki - Helsinki Real-time price. Currency in EUR
-0.0145 (-0.39%)
At close: 6:29PM EET
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Previous close3.7240
Bid3.7165 x 0
Ask3.7160 x 0
Day's range3.6825 - 3.7650
52-week range3.0230 - 5.7420
Avg. volume23,475,839
Market cap20.785B
Beta (5Y monthly)0.06
PE ratio (TTM)N/A
EPS (TTM)-0.0710
Earnings date06 Feb 2020
Forward dividend & yield0.10 (2.69%)
Ex-dividend date03 Feb 2020
1y target est5.69
  • Should You Buy Nokia Corporation (HEL:NOKIA) For Its Dividend?
    Simply Wall St.

    Should You Buy Nokia Corporation (HEL:NOKIA) For Its Dividend?

    Dividend paying stocks like Nokia Corporation (HEL:NOKIA) tend to be popular with investors, and for good reason...

  • Nokia slashes 180 jobs in Finland but invests in 5G

    Nokia slashes 180 jobs in Finland but invests in 5G

    The Finnish telecoms equipment maker Nokia said on Tuesday it plans to cut around 180 jobs in Finland this year, while also planning to invest more in 5G technology and digitalization. The company said its 5G product development in Oulu and elsewhere in the country would be excluded from the 180 job cuts this year, out of its 6,000 employed in Finland. The company is on a quest to restore investor confidence following concerns that it is lagging its peers Ericsson and Huawei [HWT.UL] in 5G development.

  • Five Things to Watch in European Tech, Media and Telecom in 2020

    Five Things to Watch in European Tech, Media and Telecom in 2020

    (Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.European technology stocks are set to end 2019 with their biggest gain since the dot-com bubble, the 35% advance thus far setting a high bar to continue the rally in 2020.Key themes in the sector next year will be the expected recovery in the semiconductor inventory cycle, potentially aided by the launch of new Apple Inc. iPhones with 5G capability.While media and telecom stocks have not done as well as tech this year -- up about 15% and 1.8% respectively -- there will be no shortage of important events in 2020 as carriers seek to lighten their balance sheets ahead of the 5G network roll-out and media firms are set for more dealmaking.New Chapter for ChipsAfter European chip stocks strongly rebounded from a trade war-driven rout at the end of 2018, an agreement for a partial trade deal between the U.S. and China could further boost the sector. Investors are also hoping that demand will pick up with an upturn in the industry cycle as inventories have begun to clear.“We’ll be pretty bullish on the sector,” said Marcus Morris-Eyton, a portfolio manager at Allianz Global Investors, in a phone interview. “The risk is clearly what happens with the trade war, but I think ultimately the structural drivers are still in place and the inventory correction is over.”The success of Apple’s new iPhones, which analysts are hoping will be able to connect to 5G networks, will also be crucial for chips in 2020. Toward the all-important holiday season, component suppliers into the Apple supply chain will be ones to watch, including STMicroelectronics NV, Dialog Semiconductor Plc and light-sensor maker AMS AG, whose 73% drop in 2018 has been partially offset by a gain of similar magnitude this year.Getting Into GearSpeaking of 5G, Ericsson AB and Nokia Oyj have come into focus as potential alternatives to Huawei Technologies Co. as the Chinese firm has been hit with sanctions and network restrictions in a global tech feud.However, the two European firms have much to prove in 2020 given the worries that Nokia’s technology is lagging rivals, while Ericsson’s stock has struggled to reach mid-year highs again after an earnings miss, which came with a warning that its 5G roll-out in Asia would weigh on profit.One believer in Nokia is Chris Hiorns, manager of the Amity European Fund at EdenTree Investment Management, who added to his position after the firm’s recent profit warning.“Longer-term they are in a strong competitive position, and I think that the market reaction to Nokia’s profit warning was overdone,” Hiorns said in a phone interview. He also owns Ericsson stock.Tower DealsThe expense of rolling out the next generation of networks has prompted some telecom operators to look at offloading assets -- Altice Europe NV’s fiber deal and Telefonica SA’s reorganization are prime examples where reducing debt is a priority. It’s notable that Spain’s Cellnex Telecom SA is the Stoxx 600 Telecom Index’s second-best gainer this year as the tower company snaps up assets from the likes of Orange SA, Arqiva and Iliad SA.Spinning out the infrastructure assets may become a catalyst for the sector that’s out of favor and looks cheap, Alasdair McKinnon, lead manager of the Scottish Investment Trust, said in a phone interview. In addition, “if the market does go down, well actually people will be falling over themselves to find reasons to look at these stocks.”Telecom companies are also teaming up with one another to reduce network construction costs, such as in the collaboration between Vodafone Group Plc and Telecom Italia SpA, and Germany’s top phone carriers. The creation of separate tower companies, like Vodafone is planning, is another option. 5G has already launched in seven European markets, according to New Street Research, and upcoming auctions in France and the U.K. are due next year.Media M&ADealmaking has really fired up this year among media stocks and JPMorgan expects to see more deals in 2020, following Peppa Pig-owner Entertainment One Ltd.’s sale to Hasbro Inc. and the private equity deal for Scout24 AG’s auto unit agreed earlier this week.“M&A has started in the space and will continue, we believe, given low interest rates, low growth, FX, and attractive valuations,” JPMorgan said, highlighting sub-sectors such as online classifieds, online takeaway firms, content and free-to-air broadcasting.Other deals to keep watching include Prosus NV and NV‘s battle for U.K. online food delivery company Just Eat Plc and moves by Mediaset SpA to merge its Italian and Spanish units into a new Dutch holding company. Watch this space as Mediaset’s feud with shareholder Vivendi SA has been making progress tricky.Satellite FightSatellite stocks were among the worst performers on the Stoxx 600 Media Index this year, with SES SA slumping 24% and Eutelsat Communications down 14%. SES and its U.S.-listed peer Intelsat SA have been deflated by the U.S. regulator rejecting their plan to raise billions of dollars by selling airwaves in a private sale, calling instead for a public auction.Last week a bill was approved that would limit how much the two companies can make from the auction. Investors will be looking for further details from Federal Communications Commission Chairman Ajit Pai regarding his plan for the sale, which could come before a vote at the FCC’s Jan. 30 meeting.\--With assistance from Michael Msika and James Cone.To contact the reporter on this story: Kit Rees in London at krees1@bloomberg.netTo contact the editors responsible for this story: Celeste Perri at, Kasper Viita, Beth MellorFor more articles like this, please visit us at©2019 Bloomberg L.P.

  • Can Germany Really Afford to Ban Huawei?

    Can Germany Really Afford to Ban Huawei?

    (Bloomberg Opinion) -- Germany wants a rapid roll-out of 5G technology to sort out its creaking mobile phone network. Yet a group of German lawmakers wants to ban equipment made by China’s Huawei Technologies Co. The country can’t do both.There is an inevitable trade-off for any nation considering a block on Huawei’s telecoms gear. Sticking to the equipment produced by its big rivals Nokia Oyj, Ericsson AB and Samsung Electronics Co. Ltd. might lessen the risk of exposing your networks to malicious interference from Beijing; unfortunately it also means slowing down the upgrades of those networks because Huawei is in the lead technologically. Deutsche Telekom AG, Germany’s biggest phone carrier, estimates a Chinese ban would delay its 5G deployment by at least two years.While governments from Britain to India are weighing a Huawei prohibition, Berlin has much more at stake than almost any other nation. That’s due in part to the Chinese company’s deep penetration of the German market. While Huawei has about one-third of Europe’s market for telecoms equipment, it supplies at least half of Deutsche Telekom’s gear.The German magazine WirtschaftsWoche has reported that Telekom plans to strip Huawei components out of its core network over the next two years, no doubt because of the political pressure. Yet Spain’s Telefonica SA, which operates Germany’s second-biggest wireless network, last week picked both Huawei and Nokia as key suppliers for its own next-generation networks. This is why concerted European action on Huawei makes more sense than doing it piecemeal.Germany has one of the worst mobile networks in Europe, according to research firm OpenSignal. As part of its auction of 5G spectrum rights, the German regulator stipulated aggressive coverage targets. The aim is to make sure that the country’s industrial companies can lean on 5G to keep pace with the latest innovations in artificial intelligence and cloud computing.Just as significantly, many of Germany’s biggest businesses depend on Chinese exports. It is Germany’s third-biggest export destination, accounting for some $100 billion a year, and the single biggest market for carmakers Volkswagen AG, BMW AG and Daimler AG. So comments from China’s ambassador to Berlin on Friday, where he mooted retaliation for any Huawei ban, will have been heard with dismay in the boardrooms of the autos giants.QuicktakeWhy 5G Mobile Arrives With a Subplot of EspionageThis leaves Berlin with a real conundrum. Banning Huawei might be the most sensible course of action from a security standpoint. There’s also the not-so-small diplomatic matter of keeping the Americans happy, with Washington eager for a hard line on the Chinese company. But as Germany plays catch-up on mobile connectivity, there’s a tangible downside to such an embargo, even without factoring in retaliatory trade measures from Beijing. Lawmakers would surely have to abandon Germany’s ambitious 5G goals, which include covering 98 percent of homes with download speeds of 100 megabits per second by the end of 2022.Were fellow European Union member states to agree a common policy over the Chinese tech champion, as my colleague Andreas Kluth has advocated, then the competitive disadvantage of tackling Huawei would be reduced. But lawmakers need to acknowledge the true industrial cost of cutting it out of the supply chain.To contact the author of this story: Alex Webb at awebb25@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at©2019 Bloomberg L.P.

  • Bloomberg

    Merkel Faces Revolt Over Huawei as Lawmakers Seek Full Ban

    (Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.German Chancellor Angela Merkel is facing a potential revolt in parliament by lawmakers seeking to override her China policy and effectively ban equipment supplier Huawei Technologies Co. from the country’s fifth-generation wireless network.A bill drafted by lawmakers in Merkel’s ruling coalition stipulates that German authorities should be able to exclude “untrustworthy” 5G equipment vendors from “core as well as peripheral networks.” That goes beyond previous calls that sought to ban the Chinese firm from the more sensitive core network alone.The effort in the Bundestag, Germany’s lower house of parliament, is a major challenge to Merkel’s attempts at balancing security considerations over 5G with Germany’s delicate economic ties with China. Hawks in her government, including German intelligence agencies and the Interior Ministry, have warned that Huawei’s ties to the government in Beijing pose a security risk.While the draft doesn’t explicitly name Huawei, it’s tailored to the Chinese company and comes after months of debate about 5G security. Huawei has repeatedly denied allegations over potential espionage and sabotage.The draft legislation obtained by Bloomberg News says that security guidelines set out by Merkel’s government, which include a certification process and a declaration of trustworthiness, don’t go far enough. The political and legal systems in a vendor’s country of origin must also be taken into account, the draft says in a direct allusion to China.While negotiators haggle over a final draft, the stringent security standards set by lawmakers in Merkel’s Christian Democratic Union-led bloc and in the Social Democratic party illustrate the momentum building against the Shenzhen-based technology giant. CDU lawmakers approved a motion at a party convention last month calling for further restrictions.European SolutionsCalling 5G technology Germany’s “digital nervous system,” lawmakers said that Europe already possessed two companies that represent an alternative to “state subsidized” competitors posing a threat -- a reference to Finland’s Nokia Oyj and Sweden’s Ericsson AB.“It is thus in Germany’s own interest to rely on European solutions with respect to the 5G network expansion and to cultivate European champions,” the draft said.Excluding Huawei from the peripheral network -- and not just the more sensitive core -- would create headaches for Germany’s telecom companies, who have warned that banning the vendor would delay the county’s 5G build-out and make it more expensive.Telefonica SA’s German unit, which operates the country’s second-largest wireless network, earlier this week said Wednesday it picked Huawei and Nokia to take an equal role in supplying its 5G network upgrade.The Merkel government had proposed a compromise that imposes partial restrictions that Telecom executives were prepared to accept as long as the Chinese vendor had access to less sensitive parts. But the lawmakers’ proposal would even go beyond a recommendation by Merkel’s spy chief, Bruno Kahl, the head of the Federal Intelligence Service. While Huawei is too dependent on the Chinese Communist Party and “can’t be fully trusted,” Kahl said in October, “there may be areas where a participation doesn’t have to be excluded.”(Updates to add detail throughout)\--With assistance from Stefan Nicola.To contact the reporter on this story: Patrick Donahue in Berlin at pdonahue1@bloomberg.netTo contact the editors responsible for this story: Ben Sills at, Raymond ColittFor more articles like this, please visit us at©2019 Bloomberg L.P.

  • Nokia, Daimler, others agreed to mediation to resolve licensing dispute

    Nokia, Daimler, others agreed to mediation to resolve licensing dispute

    Nokia, German carmaker Daimler and several car parts suppliers have agreed to independent mediation to resolve their technology licensing dispute, the Finnish telecoms equipment maker said on Thursday. The move, if it leads to a successful outcome, could stave off a possible EU antitrust investigation following complaints by Daimler, Bury Technologies, Continental, Valeo and Thales-owned Gemalto to the European Commission. The Finnish telecoms equipment maker and Daimler have been at loggerheads on who should apply and pay royalties on technologies key to navigation to systems, vehicle communications and self-driving cars.

  • Bloomberg

    Huawei Wins Telefonica Deal to Help Build German 5G Network

    (Bloomberg) -- China’s Huawei Technologies Co. just got a seal of approval from one of Germany’s biggest telecom companies.Telefonica SA’s German unit, which operates the country’s second-largest wireless network, picked Huawei and Finland’s Nokia Oyj to take an equal role supplying its fifth-generation mobile phone network upgrade, the company said in a statement Wednesday. The deal is subject to the firms getting certified by German authorities, it said.The announcement is a boon to Huawei after Deutsche Telekom AG said last week it has stopped ordering new 5G equipment because of political uncertainty over Chinese suppliers. Huawei has repeatedly denied allegations its equipment could be used for espionage.There’s one caveat, though. The German government is currently drawing up security guidelines for the country’s 5G network expansion, in a move that’s expected to require certification of equipment, including antennas.Hawks in the intelligence community would like to tighten the rules in a way that would block Huawei. Chancellor Angela Merkel has said in the past she doesn’t want to bar the Chinese firm as long as it abides by certain security standards. It isn’t yet clear what requirements will ultimately be put in place, so it may be too early for Huawei to declare victory in Germany.Less SensitiveThe deal with both firms to supply the less-sensitive radio access network “will be subject to the successful safety certification of the technology and the companies,” Telefonica Deutschland Holding AG said in the statement. The company “is taking into account the ongoing political process of establishing these security guidelines without delaying the start of the 5G expansion.”Telefonica Deutschland hasn’t yet selected a supplier to upgrade the more-sensitive core network -- the ‘brain’ that houses control functions -- and won’t do so until next year, Chief Executive Officer Markus Haas said on a call with reporters.The company’s shares fell 2.1% at 11:24 a.m. in Frankfurt. Its strategy update, presented to investors in London this morning, indicated it would cut its 2019 dividend to 17 euro cents a share from 27 euro cents.Telefonica Deutschland is targeting sales growth of at least 5% through 2022 and is seeking to improve its profit margin during that period. The company is confident it can win more customers in rural areas and add fixed-line clients as well as corporate customers that install 5G in their factories, Haas said on the call.(Updates with CEO comment in seventh paragraph, updates shares.)To contact the reporter on this story: Stefan Nicola in Berlin at snicola2@bloomberg.netTo contact the editors responsible for this story: Rebecca Penty at, Jennifer Ryan, Thomas PfeifferFor more articles like this, please visit us at©2019 Bloomberg L.P.

  • Nokia halts legal action against Daimler with mediation offer in patent row

    Nokia halts legal action against Daimler with mediation offer in patent row

    Finnish telecoms equipment maker Nokia has suspended legal action against German carmaker Daimler in the hope that mediation will resolve their dispute over technology licensing fees. Nokia's pursuit of fees from Daimler has thrown a spotlight on the wider battle between tech companies and the car industry over royalties for technologies essential for navigation systems, vehicle communications and self-driving cars. Daimler, along with Bury Technologies, Continental, Valeo and Thales-owned Gemalto complained to the European Commission this year about fees demanded by Nokia for patents related to car communications.

  • Bloomberg

    One of Middle East’s Largest Startups Narrowly Averts Collapse

    (Bloomberg) -- Courier app Fetchr, once one of the Middle East’s largest startups, raised as much as $10 million in emergency funding to help avoid collapse.The Dubai-based company, which offers delivery and logistics services to e-commerce firms, is also in the process of securing as much as $25 million in additional funding to turn the company around, according to people with knowledge of the matter.Existing Fetchr investors, who had put up more than $50 million since the company was founded in 2012, will see the value of their shares diluted to almost zero, according to a letter to investors seen by Bloomberg and the people, who asked not to be identified because the matter is private.A spokesman for Fetchr confirmed the company had raised up to $10 million in financing from existing and new investors. He also said a majority of shareholders had approved a new financial and board structure.‘Rapidly Diminishing’Fetchr, once one of the rising stars of the Middle East’s nascent startup scene, was valued at almost $300 million during its latest fund-raising round in 2017.Hunting Unicorns in the Desert: The Sudden Rise of Arab StartupsSilicon Valley investors such as New Enterprise Associates, Nokia Oyj’s venture capital arm and Winklevoss Capital are among its backers, as well as prominent regional investors such as malls operator Majid Al Futtaim.The company last month warned investors that its “financial performance has been rapidly diminishing over the past twelve months” and it had considered a sale of the business or filing for bankruptcy, according to the letter.Fetchr’s rescue includes prominent businessmen such as Iyad Malas, former chief executive officer of Majid Al Futtaim, and Hussein Hachem, who led logistics firm Aramex for five years, said the Fetchr spokesman. As part of the plan, a search is underway to replace the CEO and one of the company’s two founders, Idriss Al Rifai, the people said. Fetchr’s other founder, Joy Ajlouny, left last year, the people said.Uber, Mastercard Deals Mark Arrival of Mideast Tech Sector Fetchr marketed itself as a tech company that delivers packages from mostly online retailers in six countries and almost 500 cities across the Middle East, using the customers’ phone as a GPS location.To contact the reporter on this story: Nicolas Parasie in Dubai at nparasie1@bloomberg.netTo contact the editors responsible for this story: Stefania Bianchi at, Claudia Maedler, Shaji MathewFor more articles like this, please visit us at©2019 Bloomberg L.P.

  • Bloomberg

    U.S. to Tap $60 Billion War Chest in Boon for Huawei Rivals

    (Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. The U.S. has been warning other countries not to buy telecommunications gear from China’s Huawei Technologies Co. and ZTE Corp. The government will soon put real money behind the effort.A new agency, called the U.S. International Development Finance Corporation, plans to tap some of its $60 billion budget to help developing countries and businesses purchase equipment from other companies.“The U.S. is very focused on ensuring there’s a viable alternative to Huawei and ZTE. We don’t want to be out there saying no. We want to be out there saying yes,” Adam Boehler, the first chief executive officer of the DFC, said in a recent interview.He declined to discuss specific company talks or how the money would be spent. However, the plans would be a welcome boost for Sweden’s Ericsson AB and Finland’s Nokia Oyj, which have struggled to compete with Huawei and ZTE equipment that’s often cheaper and at least as capable. The U.S. could bankroll Huawei alternatives through loans or loan guarantees to developing nations and companies, or even acquiring minority stakes in emerging makers of competing gear.Ericsson shares jumped as much as 4.2%, while Nokia gained as much as 3.2% following the story.The U.S. government is concerned about Chinese companies dominating the rollout of faster wireless networks known as 5G. The Trump administration has said Huawei and ZTE gear could be used for spying, an allegation the companies have denied. Many countries, including Germany and France, are reluctant to ban individual vendors like Huawei.How Huawei Became a Target for Governments: QuickTakeHuawei and ZTE “are state-owned enterprises or government-driven companies that subsidize their gear in some cases. The price is decent,” Boehler said. “Longer term, what is the cost of that? You shouldn’t think as a sovereign country from a short-term pricing perspective. Our focus is having people understand what they’re giving up and whether it’s worth it to save some money in the short term. It’s not.”The DFC was created last year to provide development financing to lower income and middle-income countries, which covers about half the world. It’s charged with “helping to advance U.S. foreign policy by countering the growing influence of authoritarian regimes” and expects to be fully authorized and funded by Congress in coming months.The DFC’s $60 billion investment cap is more than twice the size of its predecessor. The new agency can take minority equity stakes in companies, a new tool beyond existing capabilities that includes loans, loan guarantees and political risk insurance.Boehler wouldn’t discuss which DFC tools might be used to support purchases of non-Chinese telecom equipment. However, the Financial Times reported in October that U.S. government officials have suggested issuing credit to Huawei’s European rivals.Ericsson and Nokia didn’t respond to requests seeking comment.Another senior government official recently told Bloomberg News that the U.S. is considering funding mechanisms through the DFC that will decrease the cost of alternative commercial 5G gear. The person asked not to be identified discussing unannounced plans.The DFC is also considering whether to become a founding investor in a new technology infrastructure fund that will back emerging companies in 5G, artificial intelligence, quantum computing and other areas, Boehler said. The fund won’t invest in Chinese companies, he noted.“This could support bids on spectrum, investments in infrastructure or the development of a component for 5G,” he said. “We want to make sure that the next crop of companies, if they’re not U.S.-based, that they at least adhere to the principals we care about -- the rule of law and data protection.”“The real issue about Huawei is not China, it’s security of data,” he added. “We want to ensure that companies adhere to certain data-security standards and the protection people’s information.”Ethiopia is in the midst of privatizing its telecom industry and is auctioning spectrum and licenses. Vodacom Group Ltd., majority owned by British wireless giant Vodafone Group Plc, is planning a joint bid with Kenyan operator Safaricom Plc.“That is a live example that we can play in,” Boehler said. “There are no U.S. companies involved at this point, but the British are bidding.”(Updates with Ericsson and Nokia shares in fifth paragraph.)To contact the reporter on this story: Alistair Barr in San Francisco at abarr18@bloomberg.netTo contact the editors responsible for this story: Tom Giles at, Molly Schuetz, Andrew PollackFor more articles like this, please visit us at©2019 Bloomberg L.P.

  • Nokia names veteran Sari Baldauf as group boss to take on 5G challenge

    Nokia names veteran Sari Baldauf as group boss to take on 5G challenge

    Taking on the top job at Nokia will make Baldauf, 64, one of the most high-profile female executives in the telecoms industry globally. Baldauf headed Nokia's networks unit - now the company's main business - between 1998 and 2005.

  • Nokia says working to end patent licensing row with Daimler, others

    Nokia says working to end patent licensing row with Daimler, others

    Nokia said on Friday it was working to end a row with Germany's Daimler and other firms which have complained to the EU antitrust regulators about the level of fees charged for technology patents from the Finnish company. Sources familiar with the matter told Reuters the Finnish telecoms equipment maker had submitted a proposal for resolving the patent licensing fee row, but did not give details. The offer could pre-empt any move by the European Commission to open an investigation and remove the threat of fines if the firm was found to be abusing its position.

  • Nokia operations chief to leave in management reshuffle

    Nokia operations chief to leave in management reshuffle

    Erlemeier, who has been with the company for 25 years and served as chief operations officer for the past two years, was responsible for global operations and procurement, the overall operating model and implementation of cost savings, among other functions. Last month Nokia cut its outlook for this year and next because of the need to step up investment in 5G, sending its share price down by a third.


    Apple Rises as Supplier Confirms Expansion in India - Apple (NASDAQ:AAPL) rose on Monday after its supplier Salcomp confirmed it was taking over a facility in India to make mobile chargers.

  • EU Poised to Send Warning to China on 5G

    EU Poised to Send Warning to China on 5G

    (Bloomberg) -- The European Union is poised to say potential 5G suppliers will be evaluated based on their home country’s laws, a stance that could exclude Chinese businesses from some lucrative contracts for the advanced telecommunications networks.“Factors, such as the legal and policy framework to which suppliers may be subject to in third countries, should be considered,” according to a draft of a joint statement obtained by Bloomberg and planned for release next month. The document is due to be approved on an informal basis this week by government envoys with formal sign off by ministers due in December, and the wording is subject to changes.The EU statement outlines the bloc’s position following a risk assessment that described a nightmare scenario where hackers or hostile states could take control of everything from electricity grids to police communications. It warned against reliance on suppliers from countries with non-democratic systems of government.U.S. and European officials have repeatedly flagged concerns about partnering with Chinese equipment makers, such as Huawei Technologies Co., for 5G networks. Chinese companies are obliged to assist the country’s national intelligence organization in their investigations, though Chinese officials and Huawei have said there are exceptions to those rules and the company wouldn’t necessarily be forced to do so.U.S. Secretary of State Mike Pompeo tweeted on Tuesday that the EU’s risk assessment report highlights how nations should install 5G equipment and software only from companies that won’t threaten their security, privacy, intellectual property, or human rights.Key parts of the next-generation infrastructure “such as components critical for national security, will only be sourced from trustworthy parties,” according to the draft statement of EU governments. The 5G build out should be “firmly grounded in the core values of the EU, such as human rights and fundamental freedoms, rule of law, protection of privacy, personal data and intellectual property, in the commitment to transparency.”A spokesman for the EU’s Council declined to comment on the content of the draft communique.German StanceEuropean countries have the ultimate say whether or not to ban a supplier from their national networks for security reasons. German Chancellor Angela Merkel has decided to let Huawei supply some gear as long as the company fulfills certain security standards, despite intense pressure from her own party for an outright ban.The draft also stresses “the need to diversify suppliers in order to avoid or limit the creation of a major dependency on a single supplier” as well as “the importance of European technological sovereignty and promoting globally the EU approach to cyber security.”Besides Huawei, Europe’s Nokia Oyj and Ericsson AB supply 5G equipment.(Updates with U.S. Secretary of State’s tweet in fifth paragraph.)To contact the reporters on this story: Nikos Chrysoloras in Brussels at;Natalia Drozdiak in Brussels at ndrozdiak1@bloomberg.netTo contact the editors responsible for this story: Chad Thomas at, ;Giles Turner at, Amy Thomson, Richard BravoFor more articles like this, please visit us at©2019 Bloomberg L.P.

  • Did You Manage To Avoid Nokia's (HEL:NOKIA) Painful 52% Share Price Drop?
    Simply Wall St.

    Did You Manage To Avoid Nokia's (HEL:NOKIA) Painful 52% Share Price Drop?

    The main aim of stock picking is to find the market-beating stocks. But every investor is virtually certain to have...

  • Telecom Italia Likely to Exclude Nokia From Network Upgrade

    Telecom Italia Likely to Exclude Nokia From Network Upgrade

    (Bloomberg) -- Telecom Italia SpA will probably exclude Nokia Oyj from a mobile network upgrade and award the business to Ericsson AB and Huawei Technologies Co., according to people familiar with the matter.Managers at Italy’s biggest phone carrier recently told Nokia they’re concerned the equipment maker is lagging behind rivals on 5G, and that it will likely reduce its mobile network suppliers to two from three, said the people, who asked not to be named because the discussions are private.Telecom Italia is seeking tenders for a three-year project that may be worth about 600 million euros ($665 million), and will decide on the award as soon as this month, the people said. No final decision has been made, and Nokia could still play a role as a mobile network supplier to Telecom Italia, alongside Ericsson and Huawei, the people said.A spokesman for Telecom Italia declined to comment. A spokeswoman for Nokia declined to comment on commercial negotiations with customers, and said the company continues to see solid momentum in its 5G business. It has 48 commercial contracts and 15 live networks for the technology, including some of the world’s largest networks, she said.Losing the business from Telecom Italia would be a setback for Nokia, which now supplies about 30% of the carrier’s wireless gear and employs about 1,400 workers in the country. The Finnish company is struggling to keep pace with its main rivals on 5G and last month cut its profit expectations and suspended its dividend to boost research and development on the technology. Nokia shares fell 0.5% as of 10:04 a.m. in Helsinki. While the loss may be another sign that Nokia is stumbling on 5G, the symbolic significance of the loss may outweigh the direct financial hit -- the contract is small relative to the Finnish company’s 11.3 billion euros of overall mobile equipment and service sales in 2018.The tender is for work to improve Telecom Italia’s 15,000 radio access sites, including a buildout of 5G services at about 5,000 sites, the people said. Ericsson currently supplies about 40% of the carrier’s mobile equipment, and Huawei accounts for about 25%, they said.Telecom Italia Chief Executive Officer Luigi Gubitosi expects the move will help the company save money by enabling it to extract lower prices from its two suppliers, the people said. This can help it tackle its 29 billion-euro debt pile, one of the biggest in the European telecommunications industry.(Updates with Nokia shares in fifth paragraph)To contact the reporters on this story: Daniele Lepido in Milan at;Niclas Rolander in Stockholm at nrolander@bloomberg.netTo contact the editors responsible for this story: Rebecca Penty at, Jennifer RyanFor more articles like this, please visit us at©2019 Bloomberg L.P.

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