Secure

<div class="textg" style="text-align: justify; font-weight: lighter; line-height: 1.3em; font-size: 15px; border-radius: 3px; color: #80909a; padding: 10px; background-color: #F4F6F9; margin-bottom: 15px;">
 Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noreferrer noopener" class="deco-link">website policy</a>&nbsp;prior to making financial decisions.
</div> 
<p class="has-drop-cap">Nokia’s (NYSE: NOK) stock plunged as low as $2.94 at the opening bell on Tuesday after the company lost out on a $14 billion deal with telecom behemoth AT&amp;T. According to a Monday <a aria-label="press releases (opens in a new tab)" href="https://www.ericsson.com/en/news/2023/12/ericsson-and-att-in-major-future-network-of-the-future-deal" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">press releases</a>, the contract was instead won by Nokia’s rival Ericsson, which will produce 5G equipment for the project.&nbsp;</p> 
<h2 id="nokia-plummets-to-3-year-low-as-rival-ericsson-wins-14b-deal">Nokia Plummets to 3-Year Low as Rival Ericsson Wins $14B Deal</h2> 
<p>On Tuesday, Nokia’s shares fell to a more than 3-year low after the Finnish telecommunications company failed to secure a major deal to launch a new network in the US with industry giant AT&amp;T.&nbsp;</p> 
<p>Nokia’s US-listed shares tumbled to $2.94 at the market open, marking its lowest level since March 2020.&nbsp;</p> 
<p>The drop came on the reports that AT&amp;T will instead partner with Nokia’s rival, Ericsson, which will manufacture 5G equipment for the project at its plant in Texas. Ericsson’s Stockholm-listed shares were up 4.3% at the time of writing.&nbsp;</p> 
<p>According to the announcement, AT&amp;T is expected to splash nearly $14 billion over its five-year contract with Ericsson. The deal involves deploying an open radio access network (<a aria-label="Open RAN (opens in a new tab)" href="https://www.ericsson.com/en/openness-innovation/open-ran-explained#:~:text=Open%20RAN%3A%20An%20industry%20term,to%20the%20O%2DRAN%20Alliance" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">Open RAN</a>) in the US, which the American carrier intends to use for 70% of its wireless network traffic by late 2026.&nbsp;</p> 
<div class="cta-referral"> 
 <img src="https://tokenist.com/wp-content/themes/thetokenist/assets/img/del/cta-referral-1.png" alt="" class="cta-referral__img" loading="lazy" decoding="async"> 
 <div class="cta-referral__text"> 
  <p>Join our&nbsp;<a href="https://t.me/thetokenist" target="_blank" rel="noreferrer noopener nofollow">Telegram group</a>&nbsp;and never miss a breaking digital asset story.</p> 
 </div> 
</div> 
<h3 id="nokia-trims-guidance-after-att-blow">Nokia Trims Guidance After AT&amp;T Blow</h3> 
<p>AT&amp;T’s decision represents the latest blow for Nokia, affecting its market share as a supplier to the US’s largest wireless carrier. The Finnish telecoms firm’s CEO Pekka Lundmark, said the news is “disappointing,” but reiterated the company remains “fully committed” to Open RAN and has a strategy in place to drive profitability and diversify its business.&nbsp;</p> 
<p>Nokia has already been struggling financially, following a recent dip in its Q3 earnings amid reduced consumer spending.&nbsp;</p> 
<p>On Monday, the company <a aria-label="issued a lowered outlook (opens in a new tab)" href="https://www.cnbc.com/2023/12/05/ericsson-up-9percent-on-att-network-deal-as-nokia-plunges-to-three-year-low.html" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">issued a lowered outlook</a>, likely contributing to today’s <a href="https://tokenist.com/investing/how-do-stocks-work/" rel="dofollow" class="deco-link">stock</a> price decline. Notably, Nokia expected revenue from AT&amp;T in its mobile division to decrease over the following two to three years. It believes the unit will remain profitable, though it now expects a delay in its timeline for reaching a double-digit operating margin of up to two years.&nbsp;</p> 
<p>AT&amp;T accounted for 5% to 8% of Nokia’s mobile networks division’s revenue year-to-date.&nbsp;</p> <iframe src="https://tokenist.substack.com/embed" width="100%" height="320" style="border:1px solid #EEE; background:white;" frameborder="0" scrolling="no"></iframe> 
<p><em><strong>Do you think AT&amp;T’s decision could trigger a medium or long-term downturn for Nokia’s stock? Let us know in the comments below.&nbsp;</strong></em></p> 
<p>The post <a rel="nofollow" href="https://tokenist.com/nokias-shares-plummet-after-firm-fails-to-secure-14b-att-contract/">Nokia’s Shares Plummet After Firm Fails to Secure $14B AT&amp;T Contract</a> appeared first on <a rel="nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Nokia’s Shares Plummet After Firm Fails to Secure $14B AT&T Contract

Table of Contents

Tokenist

Other articles published on Dec 5, 2023

Bitcoin adoption on the rise as BTC prices briefly touch $42K

QANplatform Secures $15M Investment for Quantum-Resistant Blockchain Development

$37 billion in unreported income, IRS sounds alarm over surge in Crypto investigations

Tether’s Bitcoin Holdings Reach New Highs, Generating Over $1 Billion in Profit

Swiss city to accept tax and services payments in Bitcoin, Tether

How Much Does Pay Differ Between a Job in Web3 and One in AI?

Join our free newsletter for daily crypto updates!