Finnish telecom firm Nokia seems to be biggest gainer from the restrictions placed on Chinese firm Huawei by United States and few other countries. Nokia announced this week that its sales have increased by 7 % during the second quarter to $6.3 billion exceeding analysts’ expectations which was at $6.1 billion. The equipment manufacturer also stated that it now has 45 commercial agreements in place for setting up 5G networks and out of them nine are already live and functional. The momentum of this growth could continue partly due to security concerns about equipment of Chinese manufacturer Huawei.
While announcing its earnings statement Nokia stated that people are still accessing security concerns of service providers while providing contracts for upgrading to new telecom technology. Nokia’s shares went up by 6.8 % after announcement of good sales. Since last year US government is applying strong pressure on Huawei saying that Chinese government could use its equipment for spying on US agencies. The allegations have been strongly denied by Huawei but US president went ahead and signed an executive order banning use of its equipment within the country as the firm is a national threat.
As there is rush to replace 4G with 5G networks across the world three firms are the biggest bidders namely Nokia, Huawei and Ericsson for contracts. In June this year Huawei had announced that it has managed to win 50 commercial contracts for setting up 5G networks in global markets. President of Nokia’s Mobile Networks division Tommi Uitto stated that the ban on Chinese equipment suppliers from bidders list has opened up new opportunities for them. It says that due to changing regulatory situation telecom equipment manufacturers also have been forced to change their methods. As wireless companies in United States are not purchasing any Huawei equipment after the ban Nokia has been able to sign some of its biggest deals.