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Telecoms: the United States would like to increase the capital of Ericsson and Nokia

In need of effective national telecoms solutions to compensate for the eviction of Huawei equipment, the United States is thinking of getting its hands on European specialized manufacturers: Ericsson and Nokia.

As part of an event dedicated to 5G, William Barr, Minister of Justice, hinted that the United States could go up to the capital of the European telecom equipment manufacturers Ericsson and Nokia, or even “take control (…) directly or through a consortium of American and allied companies “. It must be said that few American companies are able to provide solutions for the deployment of telecom networks. Therefore, with Huawei and ZTE on the sidelines, American operators have no choice but to use Ericsson or Nokia equipment to deploy new radio infrastructures.

Indeed, even if Cisco sells equipment of this type, the manufacturer is far from having the scale necessary to respond to all requests, especially since technically Chinese or European solutions are deemed to be more efficient. A tense situation for the United States at the dawn of 5G, the country being used to having more control over such strategic technologies. So, senators could go as far as adopting the creation of a $ 1 billion fund to finance national R&D in this area.

Ericsson and Nokia in the green

While waiting to see if the American plans materialize and bear fruit, European equipment manufacturers are taking full advantage of the foreclosure of Huawei from many markets. It must be said that the Chinese group largely dominated this sector of activity and that the fear of seeing it collaborate with the intelligence cells of the Beijing regime pushes operators to abandon its solutions. With the unhappiness of some making the happiness of others, Ericsson and Nokia consequently published increasing financial results in 2019, both having made profits after years of deficit.

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