Shares of Finnish company Nokia fell to their lowest level in three years on Tuesday after the telecom company lost to Ericsson a major contract with AT&T to launch a new network in the US, CNBC and News.ro reported.

Nokia shares fell 7% on the Helsinki Stock Exchange after news that AT&T will partner with Swedish rival Ericsson to produce 5G equipment for the project at a plant in Lewisville, Texas. Instead, Ericsson shares, registered in Stockholm, rose in price by 7.4%.

AT&T will spend about $14 billion over the course of the five-year deal with Ericsson, the companies said Monday night. The partnership includes the deployment of the Open Radio Access Network (Open RAN) in the US, which AT&T plans to use for 70% of wireless network traffic by the end of 2026.

The decision deals a significant blow to Nokia by losing market share as a supplier to AT&T, which will require replacement of existing Nokia equipment in several locations. Nokia CEO Pekka Lundmark called the news “disappointing” but said the company remains “fully committed” to Open RAN and has a strategy to diversify the business and improve profitability.

The firm has already faced a difficult financial situation after a fall in profits in the third quarter as customers cut spending. The company said Monday that it expects revenue from AT&T in its mobile networks division, which accounts for 5% to 8% of year-to-date net sales, to decline over the next two to three years.

Nokia is trying to reassure investors

The Finnish company expects its mobile networks division to remain profitable, but said it has delayed its timetable for reaching double-digit operating margins by up to two years. Nokia said a cost-cutting plan it announced in October, which would cut up to 14,000 jobs, will partially mitigate the impact of AT&T’s decision.

Nokia will continue to provide AT&T with products and services in other areas. American titan AT&T has also partnered with companies such as Fujitsu, Intel and Dell from Japan.

Open RANs or ORANs represent a cost-effective and energy-saving transition for telcos to use cloud-based software and hardware from multiple vendors, rather than proprietary hardware provided by a smaller number of large companies with which they do not work together.

The move has met with some resistance from suppliers due to concerns about losing business opportunities.

“Through this collaboration, we will open up radio access networks, drive innovation, drive competition and connect more Americans with 5G and fiber,” AT&T Network Executive Vice President Chris Sambar said Monday.