Benzinga | Mar 18, 2021 02:02PM EDT

Nokia CEO Bets On Longer 5G Cycle To Catchup With Competition: Bloomberg

* Nokia Oyj (NYSE: NOK) CEO Pekka Lundmark expects time-consuming 5G networks investments to act as a boon enabling the Finnish telecommunications gear maker to catch up with the competition, Bloomberg reports.

* Lundmark expects the main 5G network buildout to take twice the time of that of the 4G.

* Delays in 5G launch across Europe would enable Nokia to win back market share from Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC) and Huawei Technologies Co Ltd.

* Nokia was reportedly ramping up shipments of base stations containing more cost-effective proprietary system-on-chip.

* "We were not that successful in the first phase of 5G, our product was not ready. "It's significantly more competitive now, and we believe that when we get through this year, we will have restored our competitiveness," Lundmark told Bloomberg.

* Nokia recently disclosed its plans to slash up to 10,000 jobs to divert higher investment into research and development (R&D) for better growth and margin prospects, including stepping up of its competition.

* Price action: NOK shares traded lower by 6.43% at $4 on the last check Thursday.