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Will BCE and Telus Choose Nokia as Their 5G Suppliers?

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Rogers chose Ericsson as its 5G supplier

Nokia (NOK) is in talks to sell 5G equipment to Canadian operators, according to a report from the Financial Post. Canadian operators BCE (BCE) and Telus Corporation (TU) have yet to select their 5G suppliers amid uncertainty around the use of Huawei products in building the country’s 5G network. Canada is still deciding whether to follow in the footsteps of the United States in banning Huawei from its 5G market. Canada’s top operator, Rogers Communications (RCI), has chosen Ericsson (ERIC) as its 5G supplier, thus avoiding the uncertainty around the fate of Huawei in Canada’s 5G market.

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Nokia expects BCE and Telus to choose 5G supplier this year

BCE and Telus procured equipment from Huawei for their 4G networks. But they could be forced to choose a different supplier for their 5G networks if Canada decides to shut Huawei out of its 5G market. Nokia is presenting itself as an alternative 5G supplier for Canadian operators in the absence of Huawei.

Nokia expects Canadian operators such as BCE and Telus, which have yet to select their 5G supplier, to make a decision by the end of this year. BCE and Telus can’t wait long to pick a supplier for their 5G networks because a long delay could disadvantage their competition considering that their rival Rogers has already made its move.

The North America region is one of Nokia’s largest markets. Nokia derived 28% of its revenue from North America in the first quarter.

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