Once the dominant supplier of AT&T’s base stations, Ericsson is being supplanted by Nokia and Samsung as the primary providers of 5G equipment for the US carrier.
Ericsson currently supplies roughly 65 percent of AT&T’s 4G base stations. However, Michael Genovese, an analyst at MKM Partners, reports that Ericsson has virtually no presence in AT&T’s 5G infrastructure.
“Based on our proprietary checks, we believe both Nokia and Samsung have gained significant market share at AT&T at Ericsson’s expense,” Genovese says.
According to his research, Nokia now represents approximately 65 percent of AT&T’s deployed 5G infrastructure, with Samsung covering the remaining 35 percent.
In effect, Nokia has displaced Ericsson as AT&T’s leading base station supplier for the next-generation network, holding a share similar to Ericsson’s current position in the operator’s 4G network.
Ericsson does retain potential roles with AT&T beyond radio hardware. Genovese expects Ericsson to contribute operational support systems, orchestration tools, and back-office software for AT&T’s 5G services, even if it is largely excluded from supplying the physical radio infrastructure.
Nokia frequently emphasizes its “end-to-end” portfolio of network products as a competitive strength relative to rivals like Ericsson. Ericsson, meanwhile, continues to concentrate on maintaining and expanding its leadership in RAN (Radio Access Network) technology.
Genovese does not speculate in detail about AT&T’s motives for favoring Nokia, but one likely factor is Nokia’s wide-ranging product portfolio and its ability to offer integrated solutions across the network stack.
With US 5G networks expected to be among the most commercially significant worldwide, vendors are highly motivated to secure infrastructure contracts with major operators.
Last month, industry reports noted that Ericsson is substantially increasing its investment in the United States, calling the country the firm’s largest market. Over the past seven years, the US has accounted for roughly a quarter of Ericsson’s revenue.
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