“We see the CEO change as positive because in the current situation Nokia needs a bigger change, and that starts from the renewal of management,” wrote Inderes analyst Mikael Rautanen.

Nokia fell behind rivals Ericsson and China’s Huawei Technologies just as the Finnish company was on the cusp of large-scale roll-outs of its 5G mobile networks.

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After problems developing proprietary chipsets, Nokia was forced to buy more expensive alternatives, adding to its costs and eroding profits. Even US President Donald Trump’s campaign against Huawei has failed to reverse its fortunes.

In the face of fierce competition, Nokia has begun exploring strategic options, including potential asset sales or mergers, Bloomberg News reported last week, citing people close to the deliberations.

Suri has repeatedly asked shareholders for patience with the company’s 5G implementation. Investors will now have another six-month wait before new management is in place.

In October, Nokia angered investors when it suspended its dividend and cut its earnings guidance, wiping 23 per cent off the share price in a single day. It has also faced headwinds in integrating Alcatel-Lucent, which it acquired in 2016, and staff have complained internal politics are distracting managers.

“Markets have been very skeptical of whether Suri can continue in his role since the guidance cut last year,” Kimmo Stenvall, an analyst at OP Group in Helsinki, said by phone. “He hasn’t been able to deliver and add value to the company, especially in the 5G era, which is what he was expected to do.”

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Suri, who has been at Nokia for 25 years, became president and chief executive after running the Nokia Siemens Networks joint venture. He will leave his current position on August 31 and continue to serve as an adviser to the Nokia board until the end of this year, according to the company.

“The process looks exceptional because it seems that the current CEO has been involved in searching for the replacement,” Stenvall said. “Replacing a CEO is always a lengthy process and given that Lundmark’s name has already been announced indicates that this change has been in the works for a long time now.”

In Lundmark, 57, Nokia is getting a chief executive who has “consistently delivered robust total shareholder returns, successfully renewed the company’s strategy, and positioned it to be a strong player in the transforming global energy sector”, the company said on Monday.

“He has a record of leadership and shareholder value creation at large business-to-business companies; deep experience in telecommunications networks, industrial digitisation, and key markets such as the United States and China; and a focus on strategic clarity, operational excellence and strong financial performance,” Risto Siilasmaa, Nokia’s board chairman, said in the statement.

Lundmark has a track record of doing large deals, having engineered Fortum’s US$6.9 billion acquisition of German utility Uniper with the help of investors Elliott and Knight Vinke. The deal is expected to close this quarter.