Reports have surfaced indicating that Nokia is on the brink of finalizing a significant deal with Portuguese mobile network operator MEO to deploy 5G radio access network (RAN) infrastructure. The move comes as MEO currently relies on Huawei equipment for its RAN operations.
According to an internal memo obtained by Reuters, Tommi Uitto, Nokia’s head of mobile, stated, “We have now been selected to replace Huawei in some of the key markets in Portugal.” The authenticity of this information was further supported by anonymous sources familiar with the matter. Despite attempts to reach Nokia for comment, no response has been received as of the time of writing.
Portugal had previously announced its intention to adopt the European Union’s ‘5G toolbox’, which advocates for the gradual exclusion of Chinese vendors from telecommunications networks. This decision by MEO could be interpreted as a belated implementation of this policy. However, since the transition concerns new equipment, MEO may have delayed the switch until preparing for 5G deployment. While specifics regarding Huawei’s complete exclusion from MEO’s 5G RAN are not explicitly mentioned, it is presumed that Nokia will not be the sole beneficiary.
The decision to phase out Huawei has not been without controversy. China expressed discontent following Portugal’s announcement, resorting to familiar tactics of issuing threats of retaliatory measures. Despite Huawei’s appeal in a Portuguese court, it appears their efforts have yielded limited success, given the political latitude in such matters.
If confirmed, this development would validate Nokia’s strategic investment in a Portuguese 5G research facility in late 2022. While an earlier agreement between NOC Portugal and Nokia for a 5G standalone (SA) core had been disclosed, the potential value of this new deal is anticipated to be substantially higher. Additionally, the removal of Huawei equipment from any parts of the existing 4G network contributing to non-standalone (NSA) 5G is likely to be necessary.
This impending deal underscores the evolving landscape of global telecommunications infrastructure, with geopolitical considerations influencing strategic decisions by both operators and vendors alike.
