Nokia has faced criticism that it is falling behind competitors Huawei and Ericsson in the 5G market. In an interview with Reuters, Nokia’s software business head Bhaskar Gorti, defended the Finnish company.
“I don’t think we have a 5G problem,” Gorti told Reuters in the interview. In spite of that optimism, Nokia does indeed appear to have a problem. The company recently cut its outlook for this year and next due to its need to invest more heavily in 5G.
As Reuters reports, Nokia’s current situation is in part due to a miscalculation by the company in its choice to wait on 5G standards rather than adopting early and modifying on-the-go, as Ericsson and Huawei have chosen to do.
According to Reuters, Amit Hirchandani, sector analyst at Citi in London, says Nokia is a “show me” story. In other words, the company must prove it has the ability to deliver on the 5G front. This is especially necessary given high-profile delays that have impacted partners. Sprint recently missed its 5G rollout goals due to Nokia.
While Gorti may be trying to reassure investors, customers and partners that Nokia doesn’t have a ‘5G problem,’ it will take more than words for Nokia to regain the standing it once had.