Ericsson grabs Nokia’s market share in China

According to sources familiar with the matter at hand, Ericsson has won a 3% share in a joint 5G radio contract from China Telecom and China Unicom.

Tender documents published by these Chine companies show, Nokia, which was expected to grab Ericsson’s market share in China, did not receive any share.

The tender document doesn’t disclose percentage wins, including those of Huawei and ZTE were expected to have cornered a major share of the contracts, followed by state-owned Datang Telecom.

Governments across the globe, including ones in Europe, have tightened controls on Chinese companies building 5G networks following allegations that Huawei equipment can be used by Beijing for espionage purposes.

“We respect the customers’ decision and remain committed to continuing to support China Telecom and China Unicom’s business in the future,” said Nokia.

The development marks the second phase of the 5G radio contracts by Chinese telecom operators.

While China’s markets are highly price sensitive, high volumes however make it a somewhat attractive market in its totalitarian regime.

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