Nokia's Broadband Business Boosted as COVID-19 Pressures Networks

Many customers had planned to grow their network by 30 percent to 40 percent over the next few years assuming a steady growth in traffic.

Share on Facebook Tweet Snapchat Share Reddit Comment
Nokia's Broadband Business Boosted as COVID-19 Pressures Networks
Highlights
  • Nokia boosted fixed-line business with 2016 purchase of Alcatel-Lucent
  • The unit's revenue fell 18 percent year-on-year in the first quarter
  • Fixed broadband carries about 90 percent of Internet traffic in Europe

Finnish telecom equipment maker Nokia is seeing a pick up in orders as its broadband clients race to upgrade networks to meet higher user demand during the COVID-19 pandemic, a company executive said.

Many customers had planned to grow their network by 30 percent to 40 percent over the next few years assuming a similar growth in traffic, but COVID-19 brought in that traffic growth overnight, Sandy Motley, Nokia's President of Fixed Networks, told Reuters.

"Customers will need to accelerate the growth that they had planned in the future, and we've seen customers already talking to us about that," she said, adding orders for fixed networks were up 22 percent in the first quarter.

Nokia boosted its fixed-line networks business with the 2016 purchase of Alcatel-Lucent in a EUR 15.6 billion (roughly Rs. 1.33 lakh crores) deal. The unit's revenue fell 18 percent year-on-year in the first quarter and 5 percent between 2018 and 2019 but Motley said the decline was due to business cycles.

"We have seen some upgrades from our customers... but we think a lot of this drive will be more medium term and long term," Motley said.

The European Commission has proposed that by 2025 all European households, rural or urban, should have access to networks offering download speeds of at least 100 MBps.

It takes time to build a new fixed network as the installation of fibre cabling can't be done overnight, Stefaan Vanhastel, CTO of Nokia's fixed networks business, told Reuters.

"Certainly we see that operators are starting to consider accelerating fibre rollouts," he said.

Fixed broadband carries about 90 percent of all Internet traffic in Europe, according to a report by research firm Analysys Mason.

In 2019, Nokia's Fixed Access business amounted to around 10 percent of the company's main networks business sales, with Mobile Access accounting for 64 percent.

© Thomson Reuters 2020


OnePlus 8 vs Mi 10 5G: Which Is the Best 'Value Flagship' Phone in India? We discussed this on Orbital, our weekly technology podcast, which you can subscribe to via Apple Podcasts or RSS, download the episode, or just hit the play button below.

Comments

For the latest tech news and reviews, follow Gadgets 360 on Twitter, Facebook, and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel.

Further reading: Nokia, 5G, Telecom
BSNL 200Mbps 1500GB FTTH Plan Extended to More Cities
Samsung Days Sale on Flipkart Offers Exciting Deals on Phones, Tablets, and Wearables

Related Stories

 
 

Advertisement

Advertisement

© Copyright Red Pixels Ventures Limited 2020. All rights reserved.
Listen to the latest songs, only on JioSaavn.com