Shares of Nokia (NOK) are moving lower after Earl Lum, the President of EJL Wireless Research, posted a report on LinkedIn discussing the “real possibility” of the company getting displaced at T-Mobile (TMUS) with Ericsson (ERIC). “We believe there is not a single mobile operator on planet Earth that wants an active cooling solution (i.e. fans) on their 1+kW massive MIMO radios,” Lum contends. The firm believes T-Mobile “has been more than tolerant for 10+ years in trying to modernize the Nokia portion of their mobile network and putting up with the FANs.” If Ericsson is willing to give T-Mobile “the RAN deal of a lifetime, why would T-Mobile USA not accept the offer,” asks Lum. EJL finds it apparent that Nokia can’t slash its pricing to financially match whatever offer Ericsson has put on the table, otherwise it would have done so with AT&T (T) last year. “We have heard through our channel contacts that Nokia has begged and pleaded with T-Mobile USA and is willing to do whatever it takes to not lose the account. But, the reality is that T-Mobile USA has been asking Nokia for 10+ years to do the things they have asked for and Nokia has been unable to deliver, time and time again,” the firm writes. Shares of Nokia are down 8% to $4.10 in midday trading while Ericsson is up 3% to $8.34.
Don't Miss our Black Friday Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
See the top stocks recommended by analysts >>
Read More on NOK:
- T-Mobile could drop Nokia as 5G equipment supplier, LightReading reports
- Nokia acquires Rapid’s technology assets, research & development unit
- Nokia, Reflex and Net Nine Nine to expand broadband access in South Africa
- Nokia, Fibertime expand broadband access across South Africa
- Nokia signs one-year 5G contract extension with Taiwan Mobile
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.