Nokia falls after EJL Wireless predicts loss to Ericsson at T-Mobile - InvestingChannel

Nokia falls after EJL Wireless predicts loss to Ericsson at T-Mobile

Shares of Nokia (NOK) are moving lower after Earl Lum, the President of EJL Wireless Research, posted a report on LinkedIn discussing the “real possibility” of the company getting displaced at T-Mobile (TMUS) with Ericsson (ERIC). “We believe there is not a single mobile operator on planet Earth that wants an active cooling solution (i.e. fans) on their 1+kW massive MIMO radios,” Lum contends. The firm believes T-Mobile “has been more than tolerant for 10+ years in trying to modernize the Nokia portion of their mobile network and putting up with the FANs.” If Ericsson is willing to give T-Mobile “the RAN deal of a lifetime, why would T-Mobile USA not accept the offer,” asks Lum. EJL finds it apparent that Nokia can’t slash its pricing to financially match whatever offer Ericsson has put on the table, otherwise it would have done so with AT&T (T) last year. “We have heard through our channel contacts that Nokia has begged and pleaded with T-Mobile USA and is willing to do whatever it takes to not lose the account. But, the reality is that T-Mobile USA has been asking Nokia for 10+ years to do the things they have asked for and Nokia has been unable to deliver, time and time again,” the firm writes. Shares of Nokia are down 8% to $4.10 in midday trading while Ericsson is up 3% to $8.34.

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