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The Latest on Apple and Nokia: Strategies, Acquisitions, and More

PART:
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Part 12
The Latest on Apple and Nokia: Strategies, Acquisitions, and More PART 12 OF 15

Why Nokia Partnered with DoCoMo

Network upgrade ahead of Olympics

In June 2017, Nokia (NOK) announced that it was collaborating with Japanese mobile operator NTT DoCoMo and Intel (INTC) in a 5G (fifth-generation) network test in Japan (EWJ).

DoCoMo is a leading mobile operator in Japan. The company is a rival of SoftBank, the majority shareholder in US (SPY) wireless carrier Sprint (S). DoCoMo is working on network improvements ahead of the 2020 Summer Olympics in Tokyo. The 5G network trial is part of the carrier’s network upgrade efforts.

Why Nokia Partnered with DoCoMo

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Intel responsible for end user device

The alliance of Nokia, Intel, and DoCoMo is using Nokia’s 5G FIRST solution to transmit 5G signals. For the signal receiver, the alliance is using Intel’s 5G Mobile Trial Platform, which acts as the end user device. The partners are using the 4.5 GHz (gigahertz) band for the 5G signal test, with tests targeting strategic locations such as tourist and shopping areas.

Benefits for the partners

The trial will ensure that DoCoMo is adequately prepared for commercial 5G network deployment. Intel, which missed the initial Smartphone boat, is hoping to use the collaboration to ensure that it doesn’t fall further behind rival Qualcomm (QCOM) in the mobile chip business.

As for Nokia, its collaboration with DoCoMo for 5G network testing provides it with an opportunity to demonstrate the potential of its 5G FIRST solution as it positions itself to ride the 5G network upgrade wave.

Network equipment vendors such as Nokia, Cisco (CSCO), and Ericsson (ERIC) are working with carriers around the world to test their advanced network technologies in preparation for the commercial deployment of their 5G networks.

SNS Research expects that spending on pre-standard 5G networks will hit $250.0 million by the end of 2017, while investment in standardized 5G networks should reach $21.0 billion by the end of 2025.

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