Why Is the 5G Transition Important to Nokia?



Mobile Networks business will refocus on 5G in 2016

According to Rajeev Suri, Europe-based (EFA) Nokia’s (NOK) CEO, the company’s Mobile Networks business group is moving aggressively to target leadership in 5G (fifth generation). This will leverage Nokia’s greater size and strengthen its Market position. Nokia is planning a massive shift to 5G in 2016.

Suri also stated that he sees the transition to 5G wireless networks beginning well before 2020—the year that industry experts project the start of mass-market upgrades.

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Mobile data traffic will be a key driver in the 5G transition

Earlier this year, Cisco Systems (CSCO) announced that it would collaborate with Ericsson (ERIC) and Intel (INTC) to develop the industry’s first 5G router. As members of the Verizon 5G Technology Forum, Cisco, Intel, and Ericsson will partner with Verizon (VZ) to accelerate the pace of critical 5G innovations.

The collaboration of these technology heavyweights will help secure ultra-high-speed wireless bandwidth by combining the following:

  • Cisco’s networking innovations
  • Ericsson’s advanced 5G mobile networking technology
  • Intel’s 5G silicon

This collaboration will also advance the next-generation strategic partnership between Ericsson and Cisco that was announced in November 2015. The two companies plan to work together to create networks of the future.

Cisco projects a surge in the number of mobile users, smart devices, and machine-to-machine connections in the next few years. As you can see in the above chart, the number of global mobile users is projected to rise to 11.8 billion in 2020 from 5.5 billion in 2015. Mobile-ready devices and connections are expected to rise to 7.8 billion from 4.5 billion in the same period.


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