Nokia foresees revenue dip after losing multi-billion dollar AT&T contract

Nokia has mentioned that it expects to see a dent in its revenues following AT&T's decision to award a lucrative Open RAN contract worth $14 billion to rival Ericsson. The company added that it expects revenue from AT&T in mobile networks to decrease over the next two to three years as the contract awarded to Ericsson is a five-year deal.

Pekka Lundmark, president and CEO of Nokia said, “Whilst the news from AT&T is disappointing, our Mobile Networks business has made significant progress in recent years, increasing our RAN market share and technology leadership.”

He added, "I firmly believe we have the right strategy to create value for our shareholders into the future with opportunities to gain share, diversify our business, and improve our profitability. Mobile Networks are critical to our global connected future and as I have said before the cloud computing and AI revolutions will not materialize without significant investments in networks that have vastly improved capabilities."