Nokia to supply 5G equipment to NTT DoCoMo
Nokia has signed a deal with NTT DoCoMo, Japan's largest mobile phone operator, to supply 5G baseband products with the goal to deploy in a 5G mobile network planned to be launched by 2020, according to its recent press release.
Nokia will support NTT DoCoMo's commercial 5G operation in Japan by further improving existing baseband units and integrating its 5G New Radio (5G NR)-based AirScale hardware in the network. The new data networks are expected to provide numerous benefits to consumers such as faster speeds and better data capacity. Moreover, DoCoMo is assumed to use its 5G networks to provide better services for self-driving cars, smart homes, and the business sector.
The current terms of the deal imply that DoCoMo will have 5G service available in Tokyo in time for the 2020 Olympics. Once 5G has been established in the greater Tokyo area, the company plans to implement it to the rest of the country. Nevertheless, this process is predicted to take a few years. Despite of initial obstacles, Nokia supposes that this deal is a “major milestone” in the development of 5G technology.
The Finland-based tech company, which is the world leader in the development of 5G, was already one of the DoCoMo’s leading suppliers during the 3G and 4G eras. Since 2014, both companies have been working together on the development of 5G technology. But the financial insights of the deal have not yet been disclosed by both of them. Numerous American telecom providers have also begun to work on the development of 5G networks.
Currently Nokia shares are traded at EUR 4.01 (23.01.2018). The stock reached its annual high at EUR 5.83 (02.06.2017) and its low at EUR 3.87 (12.12.2017). The twelve-month target price is estimated with EUR 5.01. Nokia current market capitalization equals EUR 23.43 billion. Nokia had 14 buy recommendations, 11 holds and 2 sells previously, according to Bloomberg.
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