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US Government Considering A Stake In Nokia, Ericsson

Ubergizmo 2020-02-11 15:26:40
With the US government seemingly not wanting anything to do with Huawei and its 5G equipment and technology, this means that they will need to look for other companies to fill that void. In fact, according to US Attorney General William Barr, he has floated the idea that the US government should invest in a stake in other companies in the 5G race.

This includes the likes of both Nokia and Ericsson, both of whom are also working on 5G technology. According to Barr, “We have to make a decision on the horse we’re going to ride in this race. Who is the 5G equipment supplier or suppliers that we will rely on to compete against Huawei around the globe to win contracts from operators and blunt Huawei’s drive to domination?”

He also suggested that both Nokia and Ericsson currently do not have Huawei’s scale or a backing from a “powerful country with a larger embedded market” such as China, which led to him suggesting that the US government should buy a stake in these companies.

Barr adds, “There have been some proposals that these concerns could be met by the United States aligning itself with Nokia and or Ericsson through American ownership of a controlling stake either directly or through a consortium of private American and allied companies.” Of course, whether or not they will remains to be seen.

Filed in General. Read more about 5g, Ericsson, Huawei and Nokia. Source: cnbc