Europe is really trying to keep up with its Chinese rivals when it comes to 5G. Nokia has managed to secure a €500M loan from the European Investment Bank (EIB) in order to sustain its 5G efforts. Less than three months ago, Ericsson has managed to score a similar, yet smaller, €250 million loan, required to sustain 5G research and development.
Nokia reportedly said that the loan was received under the European Fund for Strategic Investment, and that it should last for five years. Nokia will use the money to sustain its effort in 5G research, development and innovation. The Finns are also planning on using the funds for pushing 5G technology across multiple European countries.
“This financing bolsters our 5G research efforts and continues the broader momentum we have already seen this year in terms of customer wins and development firsts, supporting our relentless drive to be a true leader in 5G – end-to-end”, said Kristian Pullola, Nokia CFO. The company also expects a boost in its financials for the second half of the year, as it has high hopes for 5G and expects carriers to increase their “spending on the technology at the end of the year”.