Finnish mobile phone maker Nokia is replacing its current chief executive Rajeev Suri amid growing concerns over its 5G strategy. In a battle to dominate 5G mobile networks, Nokia has roped in Pekka Lundmark, chief executive of electric services company Fortum, and he will take over the reins of Nokia on 1 September 2020. Another top level rejig in Nokia includes that of Risto Siilasmaa, who will be replaced by Sari Baldauf as its new chairman in April, Bloomberg reported. Nokia is facing stiff competition from China’s Huawei and Sweden’s Ericsson and has lost ground in the race for 5G networks.
While Chinese suppliers such as Huawei were banned by the United States of America over security concerns, Nokia reportedly didn’t make the best of the opportunity to gain ground in the 5G race. With the barring of Huawei and other Chinese companies, the US’ telecom market has become largely a duopoly between Nokia and Ericsson and it was highly expected that with Huawei’s ouster, Nokia will be able to lever its financial results. However, the same didn’t materialise.
Regarding Pekka Lundmark’s appointment, Nokia said that it is getting a CEO who has “consistently delivered robust total shareholder returns, successfully renewed the company’s strategy, and positioned it to be a strong player in the transforming global energy sector,” the company said on Monday.
Rajeev Suri has completed 25 years with Nokia and six years as the company’s head. However, in his six-years tenure as CEO, Nokia has seen a drop in its shares by more than a third. Rajeev Suri had earlier indicated his willingness to step down once a succession plan was in place, according to the Finnish company.