The stock of Nokia (NYSE:NOK) closed at $4.78 losing 0.21% in yesterday’s trading session. Huawei has over the years been an arch rival of Nokia in the networks business and the most recent development was the signing into a multi-year smartphone patent license deal. From now moving forward, China’s Huawei will be performing much better considering the fact that it was able to enter royalty agreements with some of the topmost handset makers around the globe.

It was on Thursday when the Finnish company made a statements disclosing that it was going to start booking revenue and that would include a one-off catch-up payment from the fourth quarter. A number of news reporters moved out in a bid to get the two companies to reveal more details regarding the financial details in line with the agreement. Their requests were turned down after the companies declined to comment.

Nokia’s patent catalog is all about the sort of technology that keeps the need for hardware components in a handset at a minimum, increasing reception and above all conserving battery life. Quite a significant percentage of Nokia’s revenue emanates from telecoms network equipment.

Mikael Rautanen, an analyst working with research firm Inderes which sources indicate has a ‘buy’ rating on the stock opined, “It’s a significant deal because Nokia now has agreements with all the big phonemakers… The network market will remain tough, but the growing patent revenue will compensate for it.”

One outstanding aspect about these two companies is the fact that they have been longstanding rivals in the in the global telecoms equipment market. A decade down the line Nokia stood out as the largest cellphone maker around the globe. In 2014, it was compelled to make the tough decision of withdrawing from the handset market. However, it has upheld its position as a major licensor of wireless technology and it is also an enormous suppler of fixed-line network gear and mobile.

On the other hand Huawei has risen to become the largest maker of telecoms equipment and that is on the basis of revenue collection.

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Steve Kanaval: Portfolio Manager/Writer/ Market Analyst Steve began his career in the Trading Pits in Chicago making markets at the Chicago Mercantile Exchange (NYSE:CME) the Chicago Board of Trade and the CBOE in the early 80’s. He ran the Morgan Stanley Derivative Prop Trading for the firm specializing in Index Arbitrage. He continued his career as a Trader/Portfolio Manager for multiple Hedge Funds during the Internet Boom of the 90’s managing large portfolios. Steve is known as an expert in MicroCap Technology Stocks and the emerging Digital Currency markets as a Portfolio Manager for his Family Office. Steve has managed portfolio’s in volatile asset classes for 3 decades as a commodity trader, hedge fund manager and digital currency trader and miner. Steve publishes his views on the asset classes in a public forum and has published more than 10,000 articles simplifying these complex and volatile assets for readers. His work is published on multiple sites including Bloomberg,,, CryptoCurrencyNews as a paid contributor. His work includes research, journalism and archived video on important market volatility related to stocks, digital currency and other volatile misunderstood asset classes. He offers a humorous, unique insight and the related back stories and drivers for readers interested in volatility and emerging market assets. Full disclosure Steve is long 25 digital currencies and sits on the board of multiple public companies involved in digital currencies, and owns shares in these companies from time to time.