Nokia’s Senior Vice President for the Middle East and Africa, Mikko Lavanti, has reaffirmed the company’s commitment to the region, stating that it remains a key area for growth.
He emphasised that Nokia will not be “defocusing” on the market, in contrast to rival Ericsson, which appears to have taken a different approach.
In an interview with Developing Telecoms at the recently concluded Mobile World Congress in Barcelona, Lavanti highlighted the opportunities in key markets, particularly Saudi Arabia, Pakistan, and Somalia.
He revealed that some operator customers had asked current CEO Pekka Lundmark whether Nokia planned to follow its Nordic rival Ericsson in “de-prioritising” the MENA region.
Earlier this year, Ericsson merged its Europe and Middle East & Africa divisions, a move CEO Börje Ekholm said would “improve customer experience and efficiencies.” However, some in the industry have interpreted this as Ericsson shifting focus towards markets where it holds a stronger position.
“We are actually not doing the same, as we continue to grow in the region,” said Lavanti. “We have grown significantly in the Middle East and Africa over the last three years, and we will continue to grow this year as well.”
According to Nokia’s Q4 2024 financial results, the Middle East and Africa division was the company’s fourth-largest regional unit by net sales, contributing €633 million.
Growth markets: Saudi Arabia, Pakistan, and Somalia
Lavanti pointed to several countries where Nokia sees significant growth opportunities.
In Saudi Arabia, operators STC, Mobily, and Zain acquired spectrum in the 600MHz, 700MHz, and 3800MHz bands in November 2024. Nokia is supplying equipment for all three operators as they develop their networks using these frequencies. Additionally, the company is securing deals as part of the Saudi government’s initiative to expand rural connectivity.
Nokia is also a key supplier for STC, which recently won a $8.7 billion government contract to build a 4G network for seven of the country’s 23 ministries.
Similar developments are expected in Pakistan and Iraq, where operators are set to auction 5G licences later this year.
“We met yesterday with the [Pakistani] regulator, and the auction is expected to take place in the second quarter of this year,” Lavanti said.
Turning to Africa, Lavanti expects a wave of 5G licence awards and deployments across the continent. He also revealed that Nokia had won key tenders in Somalia, securing contracts to supply operators in the capital, Mogadishu.
However, he acknowledged the challenges in Sub-Saharan Africa, where Chinese vendors like Huawei and ZTE hold a dominant position.
New Leadership at Nokia
Last month, Nokia announced that CEO Pekka Lundmark will step down, making way for Intel EVP & GM of Data Centre and AI, Justin Hotard, as the company shifts its strategy in pursuit of growth.
On Hotard’s appointment, Lavanti commented: “Justin brings a strong background in AI and data centres, which I see as a key driver for our mobile networks business, as well as our network infrastructure, cloud, and network services businesses. I’m looking forward to gaining more insights from his experience at Intel and HP, and I’m very pleased that we have someone with his expertise on board.”
