Why Nokia Is Trying to Guide Smart Cities Implementation
The company provides a smart cities framework
Nokia (NOK) is pushing a discussion and sharing ideas on the implementation of smart cities. The company recently published a document that outlines steps that governments can take to ensure that the smart cities they develop work for everyone. The central theme in Nokia’s smart cities guide is the usage of data to personalize cities to the residents’ liking.
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The size of the IoT economy
To develop truly smart cities, Nokia suggests that an overarching government authority should lead the efforts. This initiative could result in a unified digital platform for all cities, eliminating problems of having fragmented platforms for every city.
The company’s document outlines a six-point guide for the implementation of smart cities. Those points include forging public-private partnerships, removing data barriers, and developing smart cities programs that bring together the government, businesses, and academia.
Smart cities are part of the IoT (Internet of Things) economy. As research firm IDC estimates, spending on IoT systems could grow to $1.3 trillion in 2020 from $737 billion in 2016, as portrayed in the chart above.
Eye on smart cities network business
As a provider of networking equipment, Nokia has an interest in smart cities implementation. It has already developed a platform called IMPACT (Intelligent Management Platform for All Connected Things) that it believes would be useful in the management of IoT systems in smart cities. Because the implementation of smart cities would require building city networks, Nokia can benefit from supplying its equipment for the projects.
However, it remains to be seen if guiding smart cities implementation would give Nokia and Alcatel–Lucent (ALU) an edge over Cisco Systems (CSCO), Ericsson, Juniper Networks (JNPR), and IBM (IBM) in attracting smart cities contracts.