Nokia to Replace Huawei in Supplying 5G Radio Equipment to Portugal's MEO

Nokia has been selected to supply 5G radio equipment to MEO, a major telecommunications operator in Portugal. This marks a significant shift as MEO has previously relied solely on Huawei for its 2G, 3G, and 4G Radio Access Network (RAN) equipment.

The deal, which has been agreed upon but not yet signed, is expected to be officially announced next month. Nokia's president of mobile networks, Tommi Uitto, confirmed the development in an internal blog post, stating, "We have now been selected to replace Huawei in some of the key markets in Portugal."

MEO, formerly known as Telecom Portugal and now owned by France's Altice, is one of Portugal's leading mobile operators. The decision to switch suppliers comes amidst broader concerns over Huawei's security, which have led to bans in the U.S. and several European countries.

Why this matters: This development has significant implications for the global telecommunications industry, particularly in the context of Huawei's security concerns. The shift towards alternative suppliers could lead to a rebalancing of market share and influence in the industry.

This move represents a significant win for Nokia, which has been looking to regain market share in the RAN market after losing ground to Huawei many years ago. "In recent years, MEO ... has been supplied in RAN only by Huawei. In other words, Huawei has had a 100% market share in 2G/3G/4G," Uitto noted in his blog post.

The global RAN market is expected to decline by 5-8% in 2024, according to research firm Dell'Oro. This decline has already impacted companies like Nokia and its Swedish rival Ericsson, both of which have had to cut thousands of jobs resulting from reduced demand for new equipment from telecommunications operators.

Despite these challenges, Huawei continues to hold a significant presence in Europe and maintains a major share in the fast-growing telecom market in China. However, Nokia's new contract with MEO could signal a shift in the competitive environment, particularly in Europe.

Industry watchers will be eager to see how this development impacts the market dynamics and whether other operators will follow MEO's lead in replacing Huawei with alternative suppliers.

Nokia's return to Portugal's RAN market is a notable development, especially given the company's recent struggles with declining demand. This contract with MEO could provide a much-needed boost as Nokia seeks to strengthen its position in the global telecommunications industry.

Key Takeaways

• Nokia to supply 5G radio equipment to MEO, a major Portuguese telecom operator.
• MEO previously relied solely on Huawei for 2G, 3G, and 4G RAN equipment.
• Nokia's win marks a significant shift in the global telecom industry amidst Huawei's security concerns.
• The deal could lead to a rebalancing of market share and influence in the industry.
• Nokia's contract with MEO provides a much-needed boost to its position in the global telecom market.