Nokia will be setting up 5G networks in Sweden

Telecom operator Tele2 will work with Finnish company Nokia (NYSE: NOK) to build its 5G core network in Sweden and the Baltic states, the company announced on Monday. The Swedish company said the new core infrastructure will support both 4G and 5G connectivity, enabling higher speeds and lower latencies. "We are proud to expand our longstanding relationship with Tele2 as we move into the 5G era," said Raghav Sahgal, President of Nokia Cloud and NetworkServices, in a statement. Sweden, home of Nokia's rival Ericsson (BS: ERICAs), said in October that it would ban Chinese companies Huawei and ZTE (HK: 0763) from the 5G rollout due to security risks. European countries have tightened controls on Chinese firms building 5G networks under pressure from Washington claiming Huawei equipment could be used by Beijing for espionage. Huawei has repeatedly denied being a national security risk. The Chinese company appealed a court ruling last week that allowed the Swedish telecom regulator PTS to resume 5G spectrum auctions. Tele2 previously used Huawei as a supplier on its 4G network.