STOCKHOLM: Finnish telecom equipment maker Nokia said on Tuesday it had revised down its comparable operating margin target to at least 13% by 2026 from at least 14% previously, after losing a deal with a U.S. telecom carrier.
Nokia said it still sees a path to achieving the previous target but considering current market conditions in its mobile networks business, it deemed the revision prudent.
The company took a hit after AT&T chose Ericsson to build a telecom network using a new cost-cutting technology called Open radio access network (ORAN) that will cover 70% of its wireless traffic in the United States by late 2026.
However on Tuesday, Nokia and Deutsche Telekom (DT) announced a deal to use ORAN in Germany, marking a return of the Finnish company into DT's commercial networks.
The project is already underway and will be extended from the first quarter of next year. - Reuters