Nokia is eager to revive the 5G business, can the huge loan of high-level changes usher in a new starting point?

On March 9, foreign media reported that according to the annual report submitted by Nokia, the company received a loan of 500 million euros (about 561 million US dollars) last month to help it accelerate the research and development of 5G technology.

Nokia said the loan, which was signed with the European Investment Bank (EIB) in August 2018, has an average loan term of five years, and it was not until last month (February 24) that the loan could be drawn down and used.

Nokia, which has stopped paying a dividend since late 2019, said the company needed more investment than previously expected to develop its 5G equipment. Since then, Nokia’s financial situation has been the focus of the industry’s attention.

When Nokia signed the loan agreement, it said: “Nokia will use this loan to further accelerate the research and development of the next-generation mobile communication standard 5G technology.” The reporter could not immediately reach a Nokia representative for comment on the loan details.

Nokia has said it already holds more than 2,000 essential 5G patents. This reflects Nokia’s continued leadership in 5G technology development and standardization. At the same time, continued R&D investment is also increasing its patent count.

As of last month, Huawei announced that it had won 91 5G commercial contracts, compared with 81 for Ericsson and 68 for Nokia. Nokia shares have fallen 46% since March 2019.

Another news shows that Nokia’s former CEO has decided to resign, and the company will hire Fortum’s former top executive Pekka Lundmark to take up this position and hand over the 5G business to him. As a result, Nokia 5G may usher in a new starting point and create different aspects. Nokia’s future can be expected, so stay tuned.

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