Nokia And Ericsson's Russia Exit To Impact Telecom Operations

Nokia And Ericsson's Russia Exit To Impact Telecom Operations
  • The slated departure of telecom gear makers Nokia Oyj NOK and Ericsson ERIC from Russia is likely to impede the country’s mobile network.
  • When the telecom majors leave the county, Russia’s telecon setup might be shaken up in the long run, Reuters reported.
  • It could lead to disruption in communication for the Russian people.
  • The companies’ exit would spark off a slowdown in downloads and uploads, longer outages, and difficulties in call connections.
  • Telecom operators in the country could end up with declining spare parts inventories.
  • Nokia and Ericsson together account for 50% of base stations in Russia and have a large share in telecom hardware.
  • They also play big roles in providing software for network functioning.
  • “We are working towards the end of the year and that’s when all exemptions (from sanctions) expire,” said Ericsson’s CFO Carl Mellander.
  • “Our exit will be complete. We are not going to deliver anything to Russia,” said Nokia CEO Pekka Lundmark.
  • Western countries have imposed severe economic sanctions against Russia after its invasion of Ukraine.
  • Price Action: NOK shares closed at $4.64 on Wednesday. ERIC shares closed at $5.84 on Wednesday.

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