Nokia And Ericsson's Russia Exit To Impact Telecom Operations

The slated departure of telecom gear makers Nokia Oyj NOK and Ericsson ERIC from Russia is likely to impede the country’s mobile network.
When the telecom majors leave the county, Russia’s telecon setup might be shaken up in the long run, Reuters reported.
It could lead to disruption in communication for the Russian people.
The companies’ exit would spark off a slowdown in downloads and uploads, longer outages, and difficulties in call connections.
Telecom operators in the country could end up with declining spare parts inventories.
Nokia and Ericsson together account for 50% of base stations in Russia and have a large share in telecom hardware.
They also play big roles in providing software for network functioning.
“We are working towards the end of the year and that’s when all exemptions (from sanctions) expire,” said Ericsson’s CFO Carl Mellander.
“Our exit will be complete. We are not going to deliver anything to Russia,” said Nokia CEO Pekka Lundmark.
Western countries have imposed severe economic sanctions against Russia after its invasion of Ukraine.
Price Action: NOK shares closed at $4.64 on Wednesday. ERIC shares closed at $5.84 on Wednesday.