Nokia has struck an agreement with BT – the largest mobile operator in the United Kingdom – to supply fifth-generation radio access network hardware and replace Huawei tech equipment, the Finnish group disclosed on Tuesday.
Starting at the end of 2020, British operators will not be able to acquire 5G modules from the Chinese tech firm and have to get rid of their current hardware by 2027, Mail Online reported.
The contract will make Nokia the biggest infrastructure partner and equipment supplier of BT and comes only months following the decision by the UK to bar Huawei Technologies from its next-generation 5G networks.
The UK's decision, which was based on national security concerns, effectively terminated solid ties between BT and Huawei dating back to 2005.
BT currently powers Nokia's network in central London, the Midlands, and rural spots. With the partnership, the coverage will be widened to also reach several other locations and cities across Europe.
Nokia will set up around 63 percent of BT's 5G installations, or as many as 11,600 radio towers, sources with information on the deal said. Financial terms of the agreement were not immediately announced.
According to Nokia chief executive officer Pekka Lundmark, they are very happy that BT "extended its partnership with us on 5G, making Nokia BT's biggest infrastructure partner," Smarter Analyst quoted Lundmark as saying.
BT Group chief executive officer Philip Jansen pointed out that digital connectivity was is very critical to Britain's technological and economic future and would pave the way for more jobs and provide sustainable growth.
Nokia held a 21 percent share of the world's radio access network business last year, compared to almost 30 percent for Ericsson and Huawei's 31 percent.
Meanwhile, analysts project that BT may soon seal a deal to procure equipment from a second tech supplier in order to prevent becoming completely reliant on Nokia once Huawei's kit has been totally banned.
