Source of information:
https://www.lightreading.com/5g/nokia-ceo-asks-why-europe-uses-huawei-as-china-squeezes-him-out

The global telecommunications equipment manufacturing industry is facing unprecedented geographic adjustments. Nokia CEO Justin Hotard recently publicly questioned the European market's open policies to certain manufacturers, believing that more reciprocal market access principles are needed in the construction of global telecommunications infrastructure. This statement reflects the complex challenges faced by Nordic telecom equipment manufacturers in global market competition, and also highlights the deep-seated problems of the current reconstruction of the telecom industry chain.

According to the latest market data, the global 5G infrastructure market value is expected to reach US$47.44 billion in 2025, a significant increase from US$34.23 billion in 2024. In this rapidly expanding market, Huawei, Ericsson, Nokia, Samsung and ZTE account for 79% of the global network equipment market share, of which Huawei leads with 31%, while Ericsson and Nokia account for 21% and 16% respectively.

Tommy Uyto, president of Nokia's mobile network business group, revealed that Nordic manufacturers, including Ericsson and Nokia, have only 3% of their share in some important markets, and are showing a continuous downward trend. This "invisible hand" is gradually weakening the presence of European manufacturers in the world's largest single telecom market.

Asymmetry challenge for market access

The current global telecommunications equipment market shows obvious geopolitical characteristics. Statistics from Dell'Oro Group show that in 2023, Huawei occupies the first place in the global telecom equipment market with a market share of 30%, Nokia accounts for 15%, Ericsson accounts for 13%, and ZTE accounts for 11%. However, this global pattern shows significant differences in different regional markets.

Hotard said at a press conference held at the newly-constructed R&D center in Oulu, Finland that Europe needs to re-examine its market opening policy. He pointed out that when discussing the attractiveness of the global wireless access network product market, Europe faces two key issues: one is why some manufacturers are still allowed to occupy an important position in the European network when some manufacturers cannot gain corresponding share in the main markets of European manufacturers; the other is that Europe should adopt a more flexible network integration approach.

This asymmetry in market access is triggering deep thinking in the industry. According to Strand Consul data, 22 EU countries are still using 5G network products from specific vendors as of the end of 2024, with Germany as the largest economy in the EU, accounting for about 60% of its 5G wireless access network infrastructure.

The game between technology competition and business strategy

In the current market environment, major equipment manufacturers are increasing their investment in R&D, seeking technological breakthroughs and business model innovation. In the first half of 2025, Huawei achieved revenue of 427.039 billion yuan, a year-on-year increase of 3.95%; ZTE achieved revenue of 71.55 billion yuan, a year-on-year increase of 14.5%. Meanwhile, Nokia Mobile Networks Group's second-quarter sales fell 13% year-on-year to about 1.7 billion euros on a fixed exchange rate basis, and its operating profit margin fell to 4.4%.

In the face of fierce market competition, various manufacturers have adopted different response strategies. An industry source revealed that some manufacturers adopt pricing strategies that are lower than production costs in the European market. This "dumping" practice has attracted the attention of the World Trade Organization and has also become an important reason for the industry to call for strengthening market supervision.

Nokia recently obtained an important contract from Deutsche Telekom to replace existing equipment at about 4,000 base stations. Uyto said: "Deutsche Telecom previously used Ericsson and Huawei equipment, and now decided to hand over the business of these 4,000 base stations to us, and the project is progressing smoothly. For whatever reason, Deutsche Telecom chose Nokia."

New Opportunities in Industrial Restructuring

The global telecommunications infrastructure market is undergoing profound changes. The global 5G telecom infrastructure market size is US$41.1 billion in 2024, and is expected to reach US$71.61 billion in 2025, and will continue to expand by 2034 driven by a compound annual growth rate of 42.6%. This rapid growth provides new development opportunities for major manufacturers.

In terms of technological evolution, the global 5G-Advanced network is gradually entering the commercial stage, smartphone shipments continue to recover, and 5G mobile phone shipments continue to grow. The Asia-Pacific region has become the fastest growing region, accounting for 34% of the market share, leading the way in 5G deployment and smart city projects. Europe has witnessed a rapid transformation to software-defined networks and edge computing, accounting for about 27% of the total market.

Artificial intelligence has become the core variable in the transformation of telecom equipment manufacturers. Major manufacturers are increasing their investment in AI-related technologies to adapt to the development trend of network intelligence and automation. Manufacturers such as Huawei and ZTE have performed positively in AI transformation, while Nokia and Ericsson are also actively deploying related technical fields.

The current complex pattern of the global telecommunications equipment market reflects the multiple interweaving of technological competition, geopolitical and commercial interests. With the maturity of 5G technology and the launch of 6G R&D, competition among major manufacturers will become more intense. Establishing a fair, open and reciprocal global market environment is not only conducive to promoting technological innovation and industrial development, but also in line with the fundamental interests of consumers and enterprises in various countries.

At this critical historical moment, what the global telecommunications industry needs is not division and closure, but to achieve technological progress and market prosperity through win-win cooperation while ensuring security. Only in this way can we provide stronger and more reliable infrastructure support for global digital transformation.