Nokia is considering strategic options and working with advisers to consider potential asset sales and mergers, Bloomberg reported Wednesday, citing people familiar with the matter.
Another source said that careful consideration and evaluation are still in progress, and it is uncertain that a transaction can be concluded. Nokia declined to comment.
Nokia, Ericsson and Huawei have always been strong rivals in 5g network equipment market. It said in February that it expects competition to continue to be fierce in 2020 as competitors struggle to capture market share.
Nokia's revenue in 2019 was 23.315 billion euros, with operating profit of 485 million euros.
So far, Nokia has obtained 66 5g network construction contracts and 19 5g networks of Nokia supplied devices are in commercial status.
5g network is the focus of the increasingly fierce technical war between China and the United States, because it is expected that 5g network will carry many key functions, including driverless vehicles, smart grid and military communications.
Earlier this month, U.S. Attorney General William Barr said the United States and its allies should consider investing in Nokia and Ericsson to curb Huawei's dominance in 5g technology.
Nokia's US listed shares jumped about 9% in afternoon trading.