Nokia struck separate agreements worth more than €2 billion with China Mobile, China Telecom and China Unicom to boost mobile and fixed networks across the country, as the operators prepare to transition to 5G.
The deals, signed at the China International Import Expo in Shanghai, will see Nokia deliver a range of 4G radio and fixed access equipment and services to the three operators through to the end of 2019. In a statement, the Finnish vendor said the services will help the operators to meet growing network needs as the country transitions towards 5G, with demand for mobile internet continuing to rise in China.
Nokia will no doubt be hoping the deals stand it in good stead for when the three operators in the world’s largest mobile market award network contracts for 5G commercial deployment (expected sometime in the next two years). It will be fighting western rival Ericsson as well as home players Huawei and ZTE for the deals.
In July Nokia struck a major 5G deal to supply end-to-end equipment and services for T-Mobile US, which was worth $3.5 billion.
The vendor previously said it expects its end of year performance to be boosted as 5G spending increases, following lacklustre earnings in the first half of 2018. In its Q3 financial report, CEO Rajeev Suri said its early progress in 5G was strong, while indicating a strong win rate for deals.
New levels of performance
Nokia said it will deliver a range of technologies for China’s largest operator, China Mobile, including radio access, core and passive optical networks; IP routing and optical transport; SDN; network management; and professional services.
For China Telecom, the vendor will work to improve the operator’s countrywide 4G LTE coverage; FDD-LTE radio access; deploy its end-to-end portfolio; enhance 5G cooperation; and work together to accelerate the country’s 5G progress.
China Unicom, will benefit from a range of Nokia technologies as it aims to enhance network quality and capacity to grow its 4G customer base; explore 5G evolution and artificial intelligence in its networks; and expand IoT services.
Mike Wang, president of Nokia Shanghai Bell said the company was “excited to continue our close collaboration with these important customers in China, to drive new levels of network performance as they transition toward 5G”.Subscribe to our daily newsletter