Nokia statement regarding GSMA internal report “Economic Impact Assessment of 5G supply chain restrictions in the EU.”

October 28, 2019

Earlier this year, an internal GSMA report called “Economic Impact Assessment of 5G supply chain restrictions in the EU” was leaked to the media.

Among the conclusions of that report was the claim that restricting the European supply chain to exclude certain vendors would have a cost in the range of EUR 55bn. This was only one of several claims in the report that do not stand up to serious scrutiny. On the issue of cost, for example, the report ignores the fact that operators need to invest continually in upgrading their networks using the latest available technology for capacity and performance reasons, regardless of the shift to 5G. When you adjust for this, the cost impact is a small fraction of the amount claimed in the GSMA report.

The report also claims that a restriction of vendors would result in delays to European 5G rollouts. This claim ignores the fact that Nokia has been rolling out 5G networks at a large scale across the world, including in first-adopter countries such as the United States and Korea. With that capability, it seems reasonable to assume Nokia could support 5G launches in its home market of Europe.

Nokia firmly believes that decisions related to restricting 5G vendors are an issue for governmental authorities, not private companies. Our desire is simply to ensure that the implications of those decisions are understood and based on facts and objective analysis. The leaked GSMA report, with its flawed analysis, does not help with that process.