How Nokia Could Gain Market Share from Cisco and Juniper in Routing


Aug. 31 2017, Updated 9:07 a.m. ET

Nokia launches fastest network chips

In June 2017, Nokia (NOK) announced the launch of the world’s fastest network chips. Now, Nokia has an opportunity to improve its network business revenues and compete with tech heavyweights like Cisco Systems (CSCO), Juniper (JNPR), and Huawei in the routing segment.

Nokia’s routers are capable of handling cloud-based Internet services, VR (virtual reality), programming, and next-generation mobile communications.

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Nokia aims to target business from Apple (AAPL), Google (GOOGL), Facebook (FB), and Amazon.com (AMZN), who don’t want to compromise on speed. Nokia has claimed that its routers are compatible with older products and are capable of serving existing customers who run systems on legacy infrastructure products.

Notably, Cisco had a share of almost 44% in the routing market at the end of 1Q17, followed by Huawei at 19.8%, and Juniper at 15.6%. Nokia CEO (chief executive officer) Rajeev Suri is optimistic that Nokia will gain market share from major routing firms.

FP4 silicon chipsets to be ready by 1Q18

A couple of months back, Nokia also introduced its FP4 silicon chips, which can process data at 2.4 terabits per second. These chips are expected to ship by 1Q18.

The FP4 chips will be built into routers that will enable both “core” networks and “edge” networks to run at high speeds. Nokia is looking to target web-scale companies who still spend extensively on upgrading network gear.

Nokia will also launch the 7950 petabit-class router for the core networks market that can reportedly transmit “5,000 two-hour-long high-definition videos every second,” according to a report from Reuters. For edge networks, Nokia has introduced the 7750 router that has speeds of 4.8 terabits per second.


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