Nokia spots growth opportunity in global markets, counting India, North America and Japan.
Nokia gets demand for greater speed 4G network equipment, beginning to recover this year, controlled by Japan, the business’s chief executive Rajeev Suri stated on Sunday as he proclaimed a series of deals with telecom operatives.
Talking at a news conference regarding the Mobile World Congress in Barcelona, Rajeev also prophesied a new wave of business consolidation amid telecom operators in the Indian and US markets in the way of 2017.
“Noise around carrier M&A will heat up intensely in US and India. The pent-up request, for action, is there,” Rajeev said.
Nokia and its competitors, China’s Huawei and Sweden’s Ericsson, have struggled recently as telecom operators’ demand for quicker 4G mobile broadband equipment has drawn, and upgrades to future-generation 5G equipment are quiet years away.
Nokia reiterated that while it anticipated the worldwide networks market to fall around 2 percent in the year 2017, it spotted growing chances in markets such as India, North America, and Japan.
“We believe that the primary marketplace in which we participate will be down again… but to be significantly better than last year,” Rajeev said, expecting a slower rate of decay.
“Savings in 4G, predominantly in advanced 4G technology, will pick back up in certain key markets like Japan.”
Previously this month, Nokia had reported its profits for the last quarter of last year fell less than anticipated, aided by cost cuts and the procurement of Alcatel-Lucent.
The Finnish corporation has touched a “landmark”, 3-year deal with Telefonica to create networks in London, Rajeev said on Sunday, saying that the contract pushes Nokia to overcome Ericsson as the main network contractor in Britain.
Nokia also proclaimed that it was working with US telecoms transporter Verizon and semiconductor company Intel to fund equipment for pre-commercial 5G services in United States markets, counting Dallas.
Suntrust expert Georgios Kyriakopoulos warned that worldwide weakness in operator spending will probably remain for a lengthy time and that expected consolidation will likely serve as a more drag on results for equipment vendors like Nokia.
“The fact Rajeev predicted more M&A in that space means Nokia’s essential business faces certain challenges, he told.
AT&T is looking for the regulatory endorsement for its $85.4 billion gaining of media giant Time Warner.
In the meantime, Japan’s SoftBank Group Corp is equipped to cede influence of Sprint Corp to Deutsche Telekom AG’s T-Mobile US Inc to clinch a union of the two US mobile carriers; representatives told Reuters previously this month.