STOCKHOLM (Reuters) – Finnish telecom equipment maker Nokia said on Tuesday it had revised down its comparable operating margin target to at least 13% by 2026 from at least 14% previously, after losing a deal with a U.S. telecom carrier.
Nokia said it still sees a path to achieving the previous target but considering current market conditions in its mobile networks business, it deemed the revision prudent.
The company took a hit after AT&T chose Ericsson to build a telecom network using a new cost-cutting technology called Open radio access network (ORAN) that will cover 70% of its wireless traffic in the United States by late 2026.
However on Tuesday, Nokia and Deutsche Telekom (DT) announced a deal to use ORAN in Germany, marking a return of the Finnish company into DT’s commercial networks.
The project is already underway and will be extended from the first quarter of next year.
(Reporting by Supantha Mukherjee and Anna Ringstrom, editing by Louise Rasmussen)
