American depositary receipts (ADRs) of Nokia (NOK) fell over 5% while Ericsson (ERIC) rose 1.6% in early trading Tuesday after AT&T (T) tapped Ericsson for a $14 billion deal to modernize its wireless network. AT&T shares were up 3%.

AT&T, which is one of the 澳洲幸运5𒆙官方开奖结果体彩网:biggest telecommunications companies in the world and one of the largest infrastructure investors in the U.S. across wireless and broadband fiber, called the move a "strategic industry shift." Over the five-year deal, AT&T will work with Ericsson to deploy an open radio access netwoꦉrk (Open RAN) in the U.S. that will handle 70% of the industry giant's wireless network traffic by late 2026🤡.

The decision marks a significant shift in AT&T's network infrastructure strategy, moving away from traditional proprietary RAN solutions toward a more open and flexible approach. Open RAN is expected to bring several advantages, including reduced costs, increased vendor diversity, and enhanced network agility.

The deal represents a major setback to Nokia, however, as it could impact the company's revenue and market share, with AT&T accounting for 5-8% of Nokia's mobile networks net sales in 2023.

Nokia suggested cost-cutting initiatives could partially offset the impact of AT&T's decision, but might delay the company's goal of achieving a double-digit operating margin in its mobile networks division by up to two years.