Shares of Finland's Nokia plunged to a three-year-low, as the telecoms company lost out on a major deal to roll out a new telecoms network in the U.S. with industry juggernaut AT&T.
Helsinki-listed Nokia shares were down 7% at 9:40 a.m. London time on the news that AT&T will be partnering with Swedish rival Ericsson, which will manufacture 5G equipment for the project at its factory in Lewisville, Texas.
AT&T spend is set to be near $14 billion over its five-year contract with Ericsson, the companies said late Monday.
The partnership covers the deployment of an open radio access network (Open RAN) in the U.S., which AT&T expects to use for 70% of its wireless network traffic by late 2026.
Nokia CEO Pekka Lundmark called the news "disappointing," but said that the company remained "fully committed" to Open RAN and had a strategy to diversify its business and improve profitability.
Ericsson, Nokia, Helsinki, Swedish, RAN
U.S, London, Lewisville , Texas, Stockholm