- 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.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Posted In: NewsPenny StocksGeneralBriefs