The value of the one-year deal pegged at $1.53B
Nokia and China Mobile signed a one-year agreement designed to allow the Chinese operator to operate a flexible cloud network infrastructure, Nokia said in a statement. The agreement is valued at up to 1.36 billion euros ($1.53 billion). Both Nokia Networks China and ASB are set to provide services under the agreement.
Under terms of the deal, Nokia said it will deploy its “5G”-ready AirScale Base Station, which is said to allow multiple radio technologies to operate simultaneously in one base station and offers scalability to support 5G speeds and “internet of things” demand. The Finnish vendor also will provide additional elements of its mobile radio access and core portfolio in addition to fixed access, IP routing and optical transport, customer experience management, operational support system, and third-party products as well as its global services expertise.
The agreement also stipulates both firms will work to define the products and services enabling the operator to meet growing connectivity demands. Nokia and China Mobile plan to carry out trials and develop new technologies to enable cloud connectivity and faster internet access to meet the demand as well as the evolution of networks to embrace IoT and eventually 5G.
“This agreement strengthens Nokia’s position as a leading provider of next-generation technologies in China, and reflects our larger footprint in the country following the acquisition of Alcatel-Lucent. We are committed to delivering mobile broadband capabilities that will allow operators to optimize their networks and open up new opportunities for them and their subscribers,” Mike Wang, president of the joint management team of Nokia Networks China and ASB, said.
China Mobile, the world’s largest telecom operator, counted 833.8 million mobile subscribers at the end of the first quarter of 2016, including 376.5 million LTE subscribers.
Reliance Communications close to complete merger with Aircel
In other APAC news, Indian telecom operator Reliance Communications and Aircel are expected to finalize a merger deal in early July, local newspaper Economic Times reports, citing officials with knowledge of the matter. According to the report, negotiations between the two telcos are in their advanced stages.
Under terms of the deal, Reliance will spin off its wireless operations into a new entity, which would then be merged with Aircel. The new company will operate under a new brand name and will be split between the two firms.