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UPDATE 1-Ericsson wins 5G radio contracts in China - sources

Mon 2nd August, 2021 9:56am
(Adds details about the contracts, background on China deals,
geopolitics)
    By Supantha Mukherjee and Brenda Goh
    STOCKHOLM/SHANGHAI, Aug 2 (Reuters) - Sweden's Ericsson
 ERICb.ST  won a 3% share in a joint 5G radio contract from
China Telecom  0728.HK  and China Unicom  0762.HK , according to
sources familiar with the matter. 
    Nokia  NOKIA.HE , which was expected to take away Ericsson's
market share in China, did not receive any share, according to a
tender document published by the Chinese companies.
    While the tender document doesn't disclose the percentage
wins, Huawei  HWT.UL  and ZTE  000063.SZ  were expected to have
cornered a major share of the contracts, followed by state-owned
Datang Telecom  600198.SS . 
    Ericsson, which had warned that it would lose market share
in China due to the ban of Chinese equipment suppliers in
Sweden, saw its share in China Mobile  0941.HK  drop to 2% from
11% last year, while Nokia got 4% of the contracts announced https://www.reuters.com/technology/nokia-wins-first-5g-radio-contract-china-2021-07-19
 in July.
    European governments have been tightening controls on
Chinese companies building 5G networks following diplomatic
pressure from Washington, which alleges Huawei equipment could
be used by Beijing for spying. Huawei has repeatedly denied
being a national security risk.
    Nokia, which is back on the growth path after fixing its
earlier product missteps and gaining share in several markets,
said it was aware of the tender results in China. 
    "We respect the customers' decision and remain committed to
continuing to support China Telecom and China Unicom’s business
in the future," a spokesperson said.
    This was the second phase of the 5G radio contracts by
Chinese telecom operators and covers thousands of new base
stations.
    While Chinese markets are highly competitive and price
sensitive, huge volumes of 5G gear being deployed in the country
makes it an attractive market.

 (Reporting by Supantha Mukherjee in Stockholm and Brenda Goh in
Shanghai, Editing by Louise Heavens and Emelia Sithole-Matarise)
 ((supantha.mukherjee@thomsonreuters.com; +46 70 721 1004;
Reuters Messaging:
supantha.mukherjee.thomsonreuters.com@reuters.net))
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