Europe and the United States cannot live without each other when it comes to large technology companies. That is what Nokia CEO Justin Hotard said in an interview with Reuters. While the European Union is considering providing more support for its own technology, Hotard emphasizes that access to both continents is crucial.
“Every single one of us cannot subsist on one continent or the other. We need both,” Hotard tells Reuters. He explains that this is especially true for the tech sector. Because it is cyclical in nature, the large markets of both Europe and North America are needed.
Meanwhile, competition from another continent seems to be partially disappearing for Nokia and Ericsson. Following the US’s desire to move away from Huawei equipment, Europe is attempting to do the same. The EU now plans to phase out “high-risk” technology.
Balance between markets
Like Ericsson, Nokia is also concerned about Europe’s desire to be digitally autonomous. There is a chance that the US will ban the technology of these European companies, following Huawei’s example.
But that could potentially shift the trade war towards American software. The Nokia CEO clearly does not see this happening just like that. “Every single one in Europe and the U.S. that is of scale is dependent on the European and U.S. market for scale,” says Hotard. “If you just do the analysis, there’s a significant codependence.” Furthermore, the United States does not have a major supplier of telecom equipment of its own. After banning Chinese companies for security reasons, American providers are dependent on Nokia, Ericsson, and South Korea’s Samsung.
Opportunities arising from Chinese ban
Hotard is optimistic about recent developments in Brussels to increase autonomy, but urges swift action. “Europe needs to support its business champions,” he says. “That’s not just in tech, but in other areas.” The CEO wants the EU to make existing recommendations for operators mandatory.
Incidentally, the US is not the only potential market that Nokia could find more difficult to reach. In October, China announced that Nokia and Ericsson equipment would now require Chinese approval, which could take months.
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