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A Look at Nokia’s 5G Market Opportunity

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Transition to 5G

According to Nokia (NOK), its end-to-end portfolio puts it in a position to accelerate its global 5G adoption. Nokia has invested in 5G trials that are expected to help the firm capture market opportunities in this segment. Nokia expects to have a large-scale commercial rollout for 5G in the United States by the end of 2018. Commercial rollouts are expected to begin in 2019 in multiple geographies.

Nokia’s interim report for the first quarter stated, “We also see a clear path to market share gains this year given our success in 4G expansion, 5G deals, IP routing in both the service provider segment and adjacent markets, and optical, driven by 5G and webscale customers.”

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Nokia partners with China Mobile and Orange

Earlier this year, Nokia announced a partnership with China Mobile’s (CHL) optical network project. This partnership is expected to initially focus on growing demand for 4G services and lay the groundwork for 5G services going forward.

Nokia also announced the completion of a live network trial in collaboration with Orange. The two companies validated the benefits of cloud-optimized radio access networks (or RAN) for the evolution of 5G technologies.

Nokia’s AirScale Cloud RAN is a distributed, cloud-based radio access network architecture that prepares networks for deployment of 5G access technology. Among its peers, Cisco Systems (CSCO), Ericsson (ERIC), and China’s (FXI) Huawei are also investing heavily in the 5G space.

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