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Tech Space Developments: Nokia, Ericsson, and Fitbit

PART:
1 2 3 4 5 6 7 8
Part 5
Tech Space Developments: Nokia, Ericsson, and Fitbit PART 5 OF 8

Ericsson and DoCoMo’s Big Plans

Unlocking new revenue streams

Ericsson (ERIC) is providing a content delivery network to NTT DoCoMo, a leading mobile operator in Japan (EWJ). DoCoMo plans to use Ericsson’s unified delivery network (or UDN), a revolutionary platform that enables service providers to efficiently scale the delivery of next-generation media content and services.

Ericsson’s UDN should DoCoMo subscribers to access a variety of high-quality content over the carrier’s cellular network. Ericsson’s UDN platform should also unlock new revenue streams for DoCoMo through content delivery.

Ericsson and DoCoMo’s Big Plans

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Revenue opportunity is enormous

The deal with DoCoMo marked the first deployment of Ericsson’s UDN platform in Japan, and it has the potential to unlock more content delivery network contracts for the company in Japan.

The revenue potential in the content delivery network market is enormous. According to market research company MarketsandMarkets, the global content delivery network market will grow to $23.2 billion by 2021—up from $6.1 billion in 2016, as the chart above shows.

Competing for DoCoMo’s capital budget

With the UDN deal, Ericsson joined the list of communication technology vendors competing for DoCoMo’s capital budget.

DoCoMo is also working with Nokia (NOK) and Intel (INTC) on a network upgrade initiative. DoCoMo, Nokia, and Intel are collaborating in the trial of a 5G (fifth-generation) network in Japan.

The 5G network test is part of DoCoMo’s network improvement programs as it prepares for the 2020 Summer Olympics, which are scheduled for Tokyo, Japan. In the Japanese wireless market, DoCoMo counts SoftBank among its competitors. SoftBank is the parent company of the number-four US (SPY) wireless carrier Sprint (S).

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