Russia's economy has so far weathered sanctions and export controls put in place by governments, but the impending withdrawal of Nokia and Ericsson could have a more profound impact on Russian daily life.
When telecoms gear makers Nokia and Ericsson leave Russia at the end of the year, their departure could steadily cripple the country’s mobile networks over the long-term, setting off a deterioration in communication for everyday Russians.
Nokia CEO Pekka Lundmark echoed that sentiment in a interview: “Our exit will be complete. We are not going to deliver anything to Russia.” “This will allow us to organize modern production of telecoms equipment in Russia,” he said, without naming the operators or producers. But the severing of ties to foreign firms is expected by industry sources to set back Russian communications by a generation as the rest of the world forges ahead with deploying 5G technologies.
Chinese telecoms equipment maker Huawei, the biggest vendor in Russia last year with more than a third of the market, will continue to provide software updates and continue maintenance work, but has stopped selling new equipment in Russia, according to sources familiar with the matter.
“Unquestionably, software patches are paramount to ensure networks remain operational, safe secure and reliable,” said Paolo Pescatore, an analyst at PP Foresight.
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