Nokia’s US shares rise after T-Mobile says no plans to stop partnership

(Reuters) – U.S.-listed shares of Nokia (HE:NOKIA) jumped around 5% in extended trading on Tuesday 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 (BS:ERICAs).

“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 (NYSE: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.