The competition in the 5G field is not as intense as it is in the smartphone market. However, the major players still have a lot of work to do if they must be relevant. In terms of 5G equipment supply and construction, three manufacturers stand out. We have Huawei, Ericsson, and Nokia. However, with the U.S. ban crippling Huawei in many markets, Nokia and Ericsson have a leeway. Nevertheless, Nokia has some challenges. Huawei and Ericsson are clearly ahead of Nokia in the 5G field.
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Yesterday, Nokia’s CEO, Pekka Lundmark, said that the investment in the next-generation wireless network (5G) will span a much longer period than the 4G cycle. According to him, this will allow Nokia to catch up with its competitors. As of now, the Finnish company is in a disadvantage position.
The company also outlines how it will resume its competitiveness by 2023. Lundmark claims that Nokia will lay off up to 10,000 employees in the next two years. This will enable the company to save capital for investment in the 5G field. We all know what this means, there is no job security for Nokia’s employees presently. Furthermore, Lundmark believes that these actions are necessary.
According to reports, the construction of 5G networks will take twice the time of 4G. This means that Nokia still has some time to catch up.
Obviously, the postponement of 5G networks in Europe will buy time for Nokia. Currently, Nokia is seeking to regain market share from Ericsson and Huawei. The latter two companies have won the early leading position of 5G networks.
Lundmark also claims that the company is now over the design mistakes in its 5G equipment. Presently, it is increasing its base station shipments.
He said: “We were not so successful in the first stage of 5G. Our products are not ready yet. But now, our competitiveness has increased significantly. We believe that when we get through this year’s difficulties, we will resume competition”.
The company said on Tuesday that it plans to lay off 5,000 to 10,000 employees in the next two years to cut costs and increase R&D investment, including 5G, cloud and digital infrastructure, and other areas that will benefit Nokia in the long term.
Nokia also announced today that it has signed a five-year agreement with US operator AT&T to deploy 5G networks on AT&T’s C-band spectrum.