Nokia Strikes Deal with Deutsche Telekom
Introduction
Six years ago, Germany’s largest telecommunications operator, Deutsche Telekom, turned away from Nokia due to the lack of competitive products. However, in a surprising turn of events, Nokia announced on Wednesday that it has secured a contract with Deutsche Telekom for the deployment of fifth-generation (5G) mobile network technology.
Nokia’s Triumph
Nokia and Deutsche Telekom have not disclosed the value of the contract, but this deal marks a significant comeback for Nokia after being rejected by Deutsche Telekom years ago. The agreement includes the implementation of open RAN technology in Deutsche Telekom’s mobile network, allowing for open interfaces that enable the use of various equipment and software from different manufacturers.
Collaboration with Fujitsu
Deutsche Telekom plans to adopt Nokia’s open RAN technology in over 3,000 base station sites, with Japanese company Fujitsu serving as Nokia’s partner in this endeavor. Nokia’s mobile networks chief, Tommi Uitto, expressed excitement about the partnership, emphasizing Nokia’s extensive experience in implementing open RAN technology on a large scale.
Recent Success in India
In addition to the Deutsche Telekom deal, Nokia has also secured two major contracts in India in recent months, including a multi-billion euro agreement with Bharti Airtel. These successes indicate a positive trend for Nokia’s business expansion and market presence.
Financial Outlook
The fourth quarter, spanning from October to December, is crucial for Nokia to achieve its targeted operating profit for the year, ranging from 2.3 to 2.9 billion euros. In the first nine months of the year, Nokia reported a comparable operating profit of 1.5 billion euros, setting the stage for a potentially strong finish to the fiscal year.
Conclusion
Nokia’s resurgence in the telecommunications industry, exemplified by its renewed partnership with Deutsche Telekom and recent contract wins in India, underscores the company’s commitment to innovation and global growth. As Nokia continues to expand its presence in key markets and deploy cutting-edge technologies, its financial outlook appears promising for the coming quarters.
FAQs
1. What is the significance of Nokia’s deal with Deutsche Telekom?
Nokia’s contract with Deutsche Telekom marks a major milestone in the company’s comeback, following its previous rejection by the telecommunications giant. The deployment of open RAN technology in Deutsche Telekom’s network signifies Nokia’s expertise and innovation in the mobile network industry.
2. How has Nokia performed in the Indian market?
Nokia has recently secured significant contracts in India, including a lucrative deal with Bharti Airtel, showcasing the company’s success in expanding its market presence and driving growth in key regions.