Microsoft is considering buying the Nokia Networks division. This is the second time that the American IT giant is interested in Nokia вЂ” in 2013 he bought its mobile division, but in the end, he could not realize its potential and sold it to HMD Global in 2016 Nokia Networks may also become the property of Intel вЂ” the deal may take place in 2021.
Nokia Networks will go from hand-to-hand
Nokia will become the property of Microsoft for the foreseeable future, and this will happen for the second time in the last 10 years. The forecast about the upcoming deal was published by the specialists of the CCS Insight research company.
The first company called Nokia came under Microsoft's wing in 2013 when a software corporation bought out its mobile division. It is currently owned by Finnish HMD Global, but Microsoft is no longer interested in it вЂ” its attention is focused on the network arm of the Finnish tech giant, Nokia Networks.
According to CCS Insight, the deal between Nokia Networks and Microsoft will take place in 2021 However, Microsoft will have to fight for Nokia Networks, since there will be several bidders for the purchase, and they are all from the United States.
Who else needs Nokia
In addition to Microsoft, Intel may also show interest in Nokia Networks, which is under significant pressure from AMD in the processor market and in July 2019 got rid of its cellular modem business and sold it to Apple.
The network division of Nokia may be of interest to American IT giants because the US government in general and US President Donald Trump in particular prohibit mobile operators from using telecom equipment from Chinese suppliers such as Huawei. Moreover, the ban applies not only to American operators but also to companies from other countries.
Neither Intel, nor Microsoft, nor Nokia have yet confirmed the possibility of a deal, and its amount, even a preliminary one, remains unknown.
Why Nokia needs the USA
It is not excluded that the purchase of Nokia Networks will be beneficial to the United States in its advancement in the global telecom market. For example, the UK authorities are trying to get rid of Huawei network equipment in their cellular networks as soon as possible вЂ” they ordered the British telecommunications companies to completely eliminate its use until 2027. At the end of September 2020, it was Nokia that was chosen as the main equipment supplier for the largest supplier. telecommunications services the UK вЂ” BT Group, also known as British Telecom. As part of the deal, Nokia will begin shipping BT wireless access network equipment and services throughout the UK to upgrade to 5G.
Immediately after the UK's decision to abandon Huawei's hardware in favor of other suppliers, the US authorities began to put pressure on other states to follow Britain's example. According to Reuters, US Undersecretary of State for Economic Affairs Keith Krach warned Germany and Italy that Huawei is вЂњthe hand of the Chinese Communist Party and an instrument of human rights abuses.вЂќ
Krach did not provide any proof of his words вЂ” instead, he recommended that these countries switch to the use of equipment from the Swedish Ericsson, and offered the products of the Finnish Nokia as an alternative.