Nokia initially planned to open a software development R&D center in Ukraine before the large-scale war erupted. Now, the telecom equipment manufacturer is revisiting the idea.
According to Evgen Balychev, the CEO of Nokia Solutions & Networks Ukraine, Nokia has been present in the Ukrainian market since 2006. In 2020, it began producing components for 5G networks at the facilities of the American company Jabil near Uzhgorod, but production was halted after February 24, 2022.
Despite the absence of manufacturing, Nokia's business in Ukraine has expanded. Revenue reached almost UAH 298 million, the highest figure since 2019. All of this revenue came from customer support. Additionally, the Finnish company collaborates with Kyivstar, lifecell, and Vodafone. Currently, Nokia employs around 170 people in Ukraine.
The company is considering resuming plans to open an R&D center in Ukraine for developing software for base stations or mobile operators, according to Balychev.
The investment required to establish an R&D center for software development amounts to hundreds of thousands of dollars, says former board member of InAU, Oleksandr Hlushchenko. The final amount will depend on the need to purchase equipment and the size of the development team.
The launch of the R&D center is overseen by Nokia's global office. Balychev notes that there is a risk that the company may not dare to take such a step while the active phase of the war with Russia continues.
"The question always arises, when will the war end," he adds.
