This is by far the largest 5G order that has been made public worldwide. Under the agreement, T-Mobile will use Nokia's end-to-end 5G technology, software and service portfolio of multiple products, including commercial AirScale wireless platform and native cloud core, AirFrame Hardware, CloudBand software, SON and 5G acceleration services. Nokia will provide technology and services in line with the new 5G standards, helping T-Moblie build a 5G network in the United States. In recent years, Nokia, which has been improving in recent years, can turn it around to become a highlight. Nokia’s share price has risen 14% this year.
Power 5G market
On Monday, Nokia and T-Mobile announced that Nokia will provide T-Mobile USA with $3.5 billion of next-generation 5G network equipment. This is by far the world's largest 5G transaction, and it also marks the beginning of 5G wireless network upgrade.
T-Mobile USA is the third-largest mobile operator in the US, and the company said that its multi-year supply agreement with Nokia will allow it to provide 5G services nationwide. In April of this year, T-Mobile USA agreed with Sprint. Merged to counter US telecommunications giants Verizon and AT&T.
According to industry insiders, obtaining T-Mobile's US trading agreement is very important for Nokia. Over the years, the market's demand for existing 4G networks has slowed down, which has impacted Nokia's performance, and investors can quickly mention 5G contracts. Vibrating Nokia’s profitability still has doubts and wait-and-see attitudes.
The 5G network is said to provide faster speeds for mobile phone users and to provide a faster and more reliable network for the ultimate development of new industrial automation, medical monitoring, driverless cars and other commercial uses. But from a global perspective Tightly-funded telecom operators have been reluctant to commit to commercial upgrades to existing networks. Many believe that 5G technology provides only an increase in capacity rather than new features.
The two companies said the terms of the agreement require Nokia to offer a range of 5G hardware, software and services to enable T-Mobile to provide next-generation high-speed network services. They stressed in a recent statement that Nokia will provide it to T-Mobile USA. AirScale audio access platform, as well as cloud-connected hardware, software and acceleration services.
'小胜' Ericsson
The current network equipment business market is dominated by Finland's Nokia and Sweden's Ericsson. The network equipment business has been struggling to cope with the weak growth since the 4G network equipment business reached its peak in 2015.
Nokia has just released its financial report for the first half of the year. Due to the weak market, Nokia's overall performance is not good, especially the overall revenue of the network business has dropped by about 6%, which has caused concern about its future development prospects. In contrast, Ericsson's first half of the year Stronger than Nokia's performance, Ericsson's performance showed signs of improvement by cutting expenses and increasing R&D investment. But the largest order for this amount has greatly boosted Nokia's confidence. Nokia said that the financial impact of the transaction will be in the third place. Appeared in the quarterly earnings report.
At present, the US telecom operator market is only Nokia, and Ericsson's two suppliers compete on the same platform. The two are equally competitive. T-Mobile's choice is also one of the two. The reason why we choose to cooperate with Nokia is mainly based on these technical factors. T-Mobile is merging with Sprint, and the order received by Nokia shows that it will support the 600MHz spectrum that T-Mobile acquired in last year's auction and the higher 28GHz millimeter wave band. The 600MHz spectrum will be more conducive to providing wide-area coverage and Indoor service coverage, while the 28GHz band provides faster network connection rates. In both bands, Nokia's technology is more suitable for network deployment. Second, Nokia's ability to acquire end-to-end capabilities after acquiring French telecom operator Alan The overall advantage is more obvious.
Nokia CEO Raje Suli said that Nokia’s 5G market is promising in the second half of this year, and the company has expertise in all areas of 5G – not just in mobile networks, it will bring huge advantages. .
Can 'turn over' the number of variables
Throughout the history of Nokia's development, it has repeatedly fallen into a downturn, and has repeatedly reversed the trend. Whether Nokia can really 'turn over' is still a variable.
The Nokia brand was born in 1865, when mining engineer Frederick Edelstein built a wood pulp mill on a river in Tampere, Finland, using local trees as raw materials to produce wood pulp and paperboard. Gradually expanded into the fields of rubber shoes, tires, cables, etc., and finally developed into the most well-known mobile phone manufacturer in the industry.
After entering the 1990s, Nokia had been on the verge of bankruptcy due to the involvement of the industry. At that time, Nokia’s president and senior executives decisively cut down other industries, split traditional industries, and only retained the Nokia Electronics Division, selling all other traditional industries. Since then Nokia Difficult transformation.
Nokia has made the most important and correct choice in history. Only the Nokia of the mobile telecom industry has gradually emerged from bankruptcy after five years. Due to the focus on the traditional functional mobile phone industry, Nokia's feature phone has a very good user brand at the time. Effect. In 1995, its overall mobile phone sales and orders surged, and the company's profitability reached an unprecedented height.
Since 1996, Nokia mobile phones have occupied the first place in the mobile phone market for 15 consecutive years, and launched operating systems such as Symbian and MeeGo. As of 2003, the Nokia 1100 sold a total of 200 million units worldwide, which was the highest sales in the world at that time. Mobile phones, their market share is far ahead of other well-known mobile phones at the time.
However, since the beginning of 2007, Apple Computer officially launched the iPhone, and officially changed its name to Apple. South Korea's Samsung is also growing stronger. Nokia has encountered a real opponent. In the face of the two attacks, Nokia released Saipan in 2010. 3 systems, but failed to shake Apple's iOS system and Android system, its mobile phone market share has gradually been surpassed by Apple and Samsung, began to go 'downhill', until now the calendar has not been restored after many reforms.