Skyrocketing memory prices threaten telcos’ broadband expansion; Nokia, Ericsson see impact

Nokia and Ericsson are warning that sharply higher memory prices are starting to squeeze the telecom supply chain and could slow broadband rollouts. On recent quarterly earnings calls, both network vendors told analysts that the surge in costs for key memory components is already hitting their own margins.

The companies said they may have to pass some of these higher costs on to operator customers, even as they work to lock in enough supply for the rest of the year. That raises the risk of more expensive or delayed broadband and 5G network projects, particularly for operators already under pressure to control capital spending.