Nokia Networks Wins Major 4G Contract from China Mobile

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Nokia Networks, the core business wing of Nokia Corp. (NOK), was recently awarded a $970 million contract by China Mobile Ltd. (CHL) for the supply of wireless infrastructure equipment for the latter’s ongoing 4G TD-LTE network deployment.

Per the contract, Nokia Networks will provide Evolved Packet Core (EPC), GSM wireless networking equipment, core application platforms, Operation Support Systems software and services in 2014 and 2015.

China Mobile is the largest wireless operator in the world in terms subscriber count. Currently, the company supports more than 30 million customers on its home-grown LTE-TDD (Long-Term Evolution-Time Division Duplex) network.

Notably, LTE-TDD technology uses a single channel and a timed signal to separate upload and download of data. This is contrast to the LTE-FDD (Long-Term Evolution – Frequency Division Duplex) architecture, which uses two dedicated channels for upload and download.

After the divestiture of the mobile phone business to Microsoft Corp. (MSFT), Nokia Networks now functions as the chief business division of Nokia. The other division, HERE, offers digital map information and related location-based content and services for automotive navigation systems.

Meanwhile, Nokia Networks is facing stiff competition from large network vendors like Ericsson AB (ERIC) and Cisco Systems Inc. (CSCO) along with low-cost Chinese vendors, such as Huawei Technologies and ZTE.

In an attempt to boost its market share, Nokia Networks has been continuously upgrading its product portfolio with the introduction of next-generation innovative solutions since the beginning of 2014.

Last month, the company enhanced its product portfolio with the inclusion of an advanced customer experience management (CEM) system. The new product suite will integrate big data analytics and artificial intelligence to boost automated changes in network settings.

In Jul 2014, Nokia Networks announced its intention to acquire SAC Wireless, a U.S. based network installation services provider. Nokia Networks expects the takeover to resolve problems presently plaguing the company like site procurement, applying for certifications and sub-contracting, among others.

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