Nokia to sell networking department to Samsung?

Nokia is reportedly in talks with Samsung to sell its mobile networks business, a move that could reshape the telecom industry. Valued at around $10 billion, the sale would significantly expand Samsung’s presence in the 5G market, positioning it as a major competitor to Huawei and Ericsson.

Nokia’s recent struggles, including lost contracts and declining revenues, have fueled speculation about this potential deal, which could also impact competition by reducing options for operators seeking diverse suppliers.

Bloomberg broke the story, but both Nokia and Samsung declined to comment. Like Nokia and Ericsson, Samsung has faced challenges in the 5G networking business recently.

A complete takeover of Nokia would greatly elevate Samsung’s status in the telecom industry. Samsung currently holds 6.1% of the global RAN market, and acquiring Nokia’s mobile business would boost its share to 25.6%, making it the world’s second-largest RAN vendor, just behind Huawei (31.3%) and slightly ahead of Ericsson (24.3%).

This move would have significant implications for the networking business, highlighting the challenges and limitations of Open RAN (Radio Access Network) initiatives. The consolidation of major players like Samsung and Nokia could undermine Open RAN’s goals of fostering competition and innovation through a more open ecosystem, potentially leading to increased centralization and questioning the effectiveness of Open RAN in achieving its intended objectives.

This surely tells a lot about why Nokia isn’t that interested in licencing its name… It seems that, just ten years later, we may again hear stories of Nokia’s transformative power.

Source Lightreading

 

 

Cheers Aquis_GN for the tip 😉