Nokia Just Lost This Top Chinese 5G Customer

China Mobile (NYSE: CHL), the largest telecom company in China, recently left Finnish telecom equipment maker Nokia (NYSE: NOK) out of its new batch of 5G contracts. The abrupt move was a gut punch to Nokia, which was already struggling to grow its business in China. Let's look back at the partnership, why it ended, and what it means for the future roles of Western companies in China's 5G upgrades.

Back in 2018, Nokia won a major contract from China Mobile to supply equipment for its regional optical transport network. The partnership was considered a major victory for Nokia, which was struggling to keep pace with Ericsson (NASDAQ: ERIC), ZTE (OTC: ZTCOY), and Huawei in the telecom equipment market.

Nokia said the optical network would "support the next-generation of network services, especially 5G," in China. Many investors likely assumed Nokia would remain a top supplier for China Mobile's new 5G networks, which already served 15.4 million of its 942.2 million subscribers at the end of February.

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Source Fool.com