Nokia's road to transformation: leading the next generation of 5G technology layout IoT
At the Pakistan show, Nokia announced the company's new development plan: to lead the development of a new generation of 5G technology and the Internet of Things, focusing on the market opportunity that doubled after the acquisition of Alcatel-Lucent. Nokia also announced a $350 million deployment of the Internet of Things; and a new 5G-enabled AirScale wireless access product that will replace the currently widely deployed Flexi base station.
AirScale products can support 2G, LTE Advance Pro and upcoming 5G technologies. The new base station features future-proof baseband and next-generation RF technology RF components, and AirScale saves 60% in energy compared to Flexi. Nokia also acquired Nakina, a Canadian software company focused on network security solutions, demonstrating Nokia's acquisition logic: bringing new technologies and unique capabilities to itself with small reinforcement transactions.
Nokia Deploys Next-Generation 5G Technology and IoT Development
As the world's largest mobile phone manufacturer, the past "Nokia" may now have only one outer shell. Its business has undergone tremendous changes. Mobile networks, fixed networks, IP and optical networks, application and technology analysis, and innovative technologies currently form Nokia's core business. Nokia CEO Su Li appeared in Shanghai CES Nokia 5G booth last year, showing his emphasis on 5G business.
Su Li said: "We have been pushing the development of 5G to achieve large network capacity and support the forefront of massive connections." He also said that many important IoT applications are inseparable from 5G, 5G can help people save lives and improve Environment to improve the quality of life.
Successful transformation
Last year, Nokia completed a number of business adjustments. First, it acquired Alcatel-Lucent and vigorously developed 5G technology, and has made significant progress in the development of network standardization. The second is to sell the map system to the German auto giant group consisting of Mercedes-Benz, Audi, BMW and other companies, but Nokia is still involved in the research and development of in-vehicle information.
In this regard, Su Li said: "The sale of the map service system last year, the acquisition of Alcatel-Lucent is part of the company's 10-year plan since 2014 to ensure the company's current strategic focus - Nokia should not only exist in the past. â€
Liu Wei, research director of Gartner, told the First Financial Reporter: "After Nokia's acquisition of Alcatel-Lucent, Nokia will strengthen its competitiveness in all aspects, especially in terms of communication network equipment and compete with Huawei and Ericsson." It shows that the three-legged structure of communication network equipment is more obvious. The combined Nokia's strength in wireless communication networks will approach Huawei, but it still has a certain gap with Ericsson. He also stressed that Alcatel-Lucent's technology in SDN and NFV is very powerful, while SDN and NFV play a key role in 5G technology.
5G technology will be used in many areas in the future: driverless cars, industrial Internet connected robots, stadium experience, virtual reality interaction, ultra-high capacity, large-scale connectivity and proof-of-concept demonstrations. Prof. Frank HP Fitzek, Coordinator of the Communication Network of Dresden University of Technology, Chairman of Deutsche Telekom, Germany 5G Laboratory Coordinator, said: "With the expertise in 5G communication systems, we have worked with Nokia to achieve a new low-latency 5G. Business, the tactile Internet. Low-latency communication can support remote objects and devices anytime, anywhere, such as unmanned connected cars, industrial robots and remote surgery, and will be widely used in mobile communications, manufacturing, and medical fields."
Marcus Weldon, president of Bell Labs and Nokia's chief technology officer, also said: "The automation driven by 5G will help create new businesses and spawn new services." Bell Labs has developed a convergence technology that can achieve a record peak rate of 30Gbps. It helps operators maximize the use of network assets.
Full business development
It is reported that the potential market size of Nokia and Alcatel-Lucent has reached 141 billion euros, almost doubling. According to the data of FY2015, after the merger of Nokia and Alcatel-Lucent, net sales reached 26.6 billion euros, R&D expenditure was 4.5 billion euros, 40,000 R&D personnel, and net cash flow of 10 billion euros.
"Full-service development is an important strategy for network communication equipment suppliers to occupy the market in the future. It can integrate the advantages of computing, data center and cloud services." Liu Wei told reporters: "After Nokia acquired Alcatel-Lucent, Both Huawei and Ericsson should be under pressure. Ericsson has also strategically cooperated with Cisco, but the effect is definitely not as good as that of Nokia and Alcatel-Lucent." Liu Wei expects that Nokia will have a series of big products after its completion this year. .
Nokia CEO Su Li said in an interview with the media at the Pakistan Exhibition: "If you only produce mobile phones, you can't meet the market demand." Nokia is also selling network devices directly to technology giants such as Facebook and Google. Because not only operators need to build networks, large enterprises, especially Internet companies, have high requirements for network infrastructure, such as requiring high network speed, large capacity, and high security.
Mobile phone return
Although more than 90% of Nokia's business today is focused on providing solutions for business users, the name "Nokia" carries a group of "noose" expectations.
Nokia's business unit, Nokia Technologies, is a division dedicated to branding and patent licensing, digital media and digital health. It has three functions: first, it is responsible for maintaining and authorizing a huge patent portfolio; second, authorizing Nokia The use of brands in consumer products; third, to create their own consumer products, such as the Ozo virtual reality camera launched last year.
Su Li said: "Although Nokia is mainly selling equipment to enterprises today, most people still think that it is a manufacturer of consumer products. Therefore, Nokia should boldly try the consumer products field."
This naturally makes people think about when Nokia phones will return. After Nokia sold its mobile phone business to Microsoft, the agreement banned Nokia from using the "Nokia" brand to produce mobile phones. However, since the fourth quarter of this year, the binding force of this clause has expired, which means that Nokia may re-lay the mobile phone market this year. In August last year, the head of Nokia's public relations department Brett Young told the First Financial News that Nokia may start researching how to return to the mobile phone field in the fourth quarter of this year.
So, is the return of Nokia too late when the smartphone is saturated? In this regard, Su Li is not worried. He said: "Nokia does not intend to brand, or rebuild the manufacturer and sales equipment sold to Microsoft. Nokia needs to feel very 'Nokia', making people feel that it is known as 'Nokia'."
To this end, Nokia will look for partners to meet the above expectations, with Nokia providing professional design and branding. Su Li said: "Nokia is not in a hurry, everything is still too late." For Nokia's product technology development and sales, Su Li said that the company is not limited to the development of virtual reality, another direction is the digital field, although still in its infancy. He also said: "The company is developing a strategy and will not give any promise this year."
Lu Junkuan, chief researcher at Gartner, told the First Financial Reporter: "Nokia's brand has a high affinity among consumers, but after many years of returning to the market, it will find that the market is no longer the original market. Channel changes and product differentiation will face great challenges, especially in the Chinese market. Today, the strength of Chinese smartphone manufacturers is not the same as that of the Nokia era."
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