Samsung Eyes Acquisition of Nokia's Mobile Network Business

The battle for 5G market share is becoming increasingly fierce. Samsung has made an enticing offer of $10 billion to acquire Nokia's mobile network business. If this deal goes through, Samsung will become the world's second-largest 5G equipment provider, directly competing with Huawei. This move is seen as a significant milestone, marking a new chapter in the 5G technology race.

Struggling to compete with Ericsson and Huawei over the past few years, Nokia remains a major player in the mobile network infrastructure sector. Samsung also has its own division in this area, the Radio Access Network (RAN), but it held only a 6.1% market share last year.

According to Bloomberg, Samsung is eager to purchase Nokia's business to strengthen its position. The company has put forth a $10 billion offer and is now waiting for the Finnish company to agree. If successful, Samsung would become the world's second-largest RAN provider with a 25.6% market share.

Nokia is reportedly considering several scenarios, ranging from selling part or all of the division to spinning it off or merging with a competitor. The company is compelled to explore these options as it struggles to compete with Huawei. Operating profits in Q2 2024 fell by 32% due to weak demand for 5G telecommunications equipment.

Samsung is not new to this field, already producing 4G and 5G base stations, chipsets, equipment, radios, and core mobile network components. The South Korean company currently supplies several telecom operators worldwide, including Telus in Canada, O2 in Germany, Reliance Jio in India, KDDI and NTT DoCoMo in Japan, Dish and Verizon in the U.S., and Vodafone in the U.K.