Demand for 5G networks is driving revenue increased at Nokia. The US campaign towards Huawei isn’t hurting, either.
The Finnish telecom equipment maker mentioned Thursday that sales elevated 7% within the second quarter to €5.7 billion euros ($6.3 billion). Analysts had anticipated revenue of €5.4 billion ($6.1 billion).
Nokia additionally stated it has 45 commercial offers in place for 5G, and nine of those networks are already staying. The momentum might proceed, in part due to security concerns facing Huawei.
“Some customers are reassessing their distributors in light of safety concerns,” Nokia stated in its earnings assertion. Shares have been up 6.8% in early trading.
Huawei has come under pressure from the Trump administration, which says the Chinese government may use the corporate’s equipment for snooping. Huawei denies the allegations.
In May, President Donald Trump signed an executive order barring US firms from utilizing telecommunication tools from sources the administration deems a national security threat.
The USA has since stated it might ease restrictions on the ban. However, the details remain unclear.
Nokia, Ericsson, and Huawei sell networking gear that powers mobile phone networks. As wireless firms race to build out 5G networks, the three networking companies are competing to win contracts. As of June, Huawei had won 50 commercial 5G contracts globally.
Tommi Uitto, president of cellular networks at Nokia, informed CNN Business last month that the political situation has opened the door for Nokia to grab market share.
“There are some nations which have banned Chinese rivals, and of course that creates an opportunity for us,” Uitto stated.