U.S.-listed shares of Nokia jumped around 4% in premarket trading on Wednesday after T-Mobile said it has no plans to stop working with the Finnish company in a response to an analyst report claiming such a possibility.
Nokia shares closed down around 7% after Earl Lum of EJL Wireless Research said in a LinkedIn post, there is a chance that Nokia could be dropped by T-Mobile in favor of Swedish firm Ericsson.
"We have made no decision to end our working relationship with Nokia, and any reports in the media implying this are untrue," T-Mobile said in a statement.
Lum pointed in the post to Nokia's inability to deliver on T-Mobile's networking needs and the superiority of Ericsson's products.
"T-Mobile works with both Nokia and Ericsson on our RAN, who have helped us over the years build the largest and fastest 5G network in the nation," T-Mobile said.
Last year, telecom rival AT&T chose Ericsson to build a telecom network, which will cover 70% of its wireless traffic in the U.S. by late 2026, eroding the presence of Nokia in the North American market.
