Nokia Increased Profit After Huawei’s 5G Ban
The Finnish telecom equipment maker said Thursday that sales increased 7% in the second quarter to €5.7 billion euros ($6.3 billion). Analysts had expected revenue of €5.4 billion ($6.1 billion).
Demand for 5G networks is driving revenue higher at Nokia. The US campaign against Huawei isn’t hurting, either, CNN reported.
Nokia also said it has 45 commercial deals in place for 5G, and nine of those networks are already in course. The momentum could continue, in part because of security concerns facing Huawei.
Huawei has come under pressure from the Trump administration, which says the Chinese government could use the company‘s equipment for snooping. Huawei denies the allegations.
In May, President Donald Trump signed an executive order barring US companies from using telecommunication equipment from sources the administration deems a national security threat.
The United States has since said it would ease restrictions on the ban, but the details remain unclear.
“Some customers are reassessing their vendors in light of security concerns,” Nokia said in its earnings statement. Shares were up 6.8% in early trading.
As of June, Huawei had won 50 commercial 5G contracts globally. Tommi Uitto, president of mobile networks at Nokia, told CNN Business last month that the political situation has opened the door for Nokia to grab market share.
On Monday the UK government said it needed more time to decide whether Huawei equipment should be banned from the country’s mobile phone networks.