Deutsche Telekom has told supplier Nokia it must improve its products and servic...
BERLIN - Deutsche Telekom has told supplier Nokia it must improve its products and service to win business installing the German group’s 5G wireless networks in Europe, according to internal documents and a source with direct knowledge of the matter.
But faced with the threat of restrictions on China’s Huawei - its dominant supplier of network equipment - Deutsche Telekom has decided to give Nokia another chance to mend their relationship, according to the documents and the source. With Deutsche Telekom foreswearing new deals with Huawei, according to the documents, it is increasingly relying on the only other big telecoms supplier, Sweden’s Ericsson , which is spreading its footprint in southeastern Europe.
Asked about the criticisms in the Deutsche Telekom documents, Nokia CEO Rajeev Suri declined to comment on specifics but said its relationship with the German company was strong. Three sources with direct knowledge of the matter said Deutsche Telekom reached an advanced stage in talks late last year to keep Huawei as its dominant supplier in Germany, with 70% of the investments in upgrading to super-fast 5G networks.Deutsche Telekom then suspended vendor talks to await the outcome of a debate in Berlin over the security of critical national networks, where senior lawmakers from Chancellor Angela Merkel’s conservative party back the U.S. call to bar Huawei.
Nokia’s 5G product was inferior to all other suppliers, and negotiations were complex and drawn-out for every single project, the note stated.
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