Nokia to Supply 5G Radio Equipment to Portugal's MEO: Sources Say

27th May 2024 By The Global Heroes Technology

According to an internal blog post from Nokia and two sources familiar with the situation, Nokia is poised to win a significant contract to supply 5G radio equipment to Portuguese telecom operator MEO. This deal, though not yet signed, is expected to be announced as early as next month.

This development is notable as Huawei has been MEO's sole supplier for 2G, 3G, and 4G Radio Access Network (RAN) equipment until now. MEO, one of Portugal's leading mobile operators, previously known as Telecom Portugal, is currently owned by France's Altice.

Nokia’s president of mobile networks, Tommi Uitto, mentioned in the internal blog post that MEO has relied exclusively on Huawei for its RAN needs, giving Huawei a 100% market share in Portugal's 2G/3G/4G segments. He indicated that Nokia has been chosen to replace Huawei in key markets within Portugal.

While a Nokia spokesperson declined to comment, and neither Huawei nor MEO responded to requests for comments, the implications of this deal are substantial. RAN equipment has been a major revenue driver for companies like Huawei, Nokia, and Ericsson. However, the sector has experienced a downturn in demand for new equipment since last year, leading to job cuts at Nokia and Ericsson.

The global RAN market is projected to decline by 5-8% in 2024, according to research firm Dell'Oro. Despite facing bans in the U.S. and several European countries over security concerns, Huawei maintains a presence in Europe and holds a significant share in China's rapidly expanding telecom market.

This contract would signify Nokia’s return to the Portuguese RAN market after losing its market share to Huawei years ago. Nokia has not supplied RAN equipment to any communications service providers in Portugal since then. Uitto's blog post underscores the significance of this deal for Nokia, marking a strategic re-entry into a market it once dominated.

Overall, this potential agreement highlights the shifting dynamics in the global telecom industry, where geopolitical concerns and market competition are influencing significant shifts in supplier relationships. As the telecom industry adapts to these changes, companies like Nokia are looking to regain their footing in key markets, leveraging the rollout of 5G technology to reclaim and expand their market presence.