Nokia Issues Statement On Impact Of AT&T Vendor Plans; Expects Mobile Networks To Remain Profitable

(RTTNews) - Nokia (NOK) said the company is aware of AT&T's plans to commit to an Open RAN deployment in collaboration with other vendors over the next five years. Nokia now expects revenue from AT&T in Mobile Networks will decrease over the next 2-3 years. AT&T accounted for 5-8% of Mobile Networks net sales year-to-date in 2023. Nokia stated that it expects Mobile Networks to remain profitable over the coming years but this decision would delay the timeline of achieving double digit operating margin by up to 2 years.

Nokia said the already announced action the company is taking to reduce cost base is expected to partially mitigate the impact of AT&T's decision.