Nokia losing AT&T's radio networks is a major setback for the company in the North American market - the market crucial to the company’s profitability. In addition to the already weak market situation, this will hamper the turnaround of Mobile Networks, which will play an essential role in Nokia's overall medium-term earnings improvement. Without a turnaround in the earnings trend or restructuring of the business, we find it difficult to justify material upside to the low valuation over the next 12 months.