News
Having revealed the extent of its 2020 financial woes earlier this month, Nokia will hope that this new deal is the start of an upward trend
Yesterday, Nokia announced that it has been selected by Deutsche Telekom as a “long-term strategic partner” for its optical core network. The deal will see Nokia’s equipment used to deliver higher network performance, with a specific focus on helping to build a “service-centric platform can easily scale to meet Industry 4.0 demands”.
The planned network transformation from Deutsche Telekom will see the operator make use of Nokia’s WaveFabric, a service-ready platform, and their WaveSuite software portfolio.
“We are transforming our optical network to give our customers a highly differentiated service quality of experience, and to be more responsive to their new services needs while also reducing our network TCO,” said Dr Erik Weiß, VP Optical Transport Core, Deutsche Telekom Technik, in a statement. “The Nokia optical transport solution enables us to realize these goals by creating a more scalable and automated services-centric platform that will support us well into the future.”
The deal is for an undisclosed fee and the timelines for the new equipments deployment remains undisclosed.
Earlier this month, Nokia revealed their latest financial woes, showing the company losing significant ground in the mobile access space. CEO Pekka Lundmark told reporters that mobile revenues were expected to “decline significantly” this year, as the company appears to be losing market share in both the US and China. In the latter market, where Nokia scored no major contracts in 2021, revenue fell by a quarter.
The company’s latest guidance sets sales expectations at between €20.6 billion and €21.8 billion this year, having made €21.9 billion last year.
But despite expecting a major decline in mobile sales this year, the company’s overall revenue decline is less severe, indicating that other areas of the business are beginning to pick up the slack.
"You actually see that other business areas are quite well compensating for what we are expecting to lose in mobile topline," noted Lundmark in the media call.
Also in the news:
Proximus buys out BICS from Swisscom and MTN
Huawei’s European roller-coaster: Future prospects in France and Germany
Bell Canada to invest $1.2 billion into fibre and 5G
