Nokia and Airtel have inked a $1 billion deal that will help Airtel lay the groundwork for 5G network. This deal which can potentially help Airtel compete with rival Jio is also important to the reviving Nokia that failed to get contracts in China.
Crux of the Matter
The Deal Airtel signed a multi-year agreement with Nokia for $1 billion (₹7500 crores). The latter will provide a Single Radio Access Network (SRAN) solution for nine telecom circles to Airtel in India. SRAN is a component of telecommunications system that helps connect a single device to various networks via radio connections. Now, Airtel will be able to manage 2G, 3G, and 4G from a single platform. With this Airtel has a chance to compete with Mukesh Ambani’s Reliance Jio. This deal would help Airtel: 1. Improve 4G capacity 2. Improve customer experience of its internet and VoLTE services 3. Lay down foundation of 5G connectivity 4. Reduce network complexity and costs incurred
VIL and Bharti Airtel may gradually opt to buy fresh #4G and future #5G gear from non-Chinese suppliers such as Ericsson, Nokia and Samsung to minimise #business risks and supply disruptions.https://t.co/Pxy2hHM1xZ — Economic Times (@EconomicTimes) April 24, 2020
A Deal to Save Oneself? Launched in 1995, Nokia was the first mobile brand in India. It had a thriving business in the decade of 2000 – nearly 50% market share in some years – after which it fell to android devices and iPhone. It was sold to Microsoft in 2013 for $7.2 bn. However, the company has been looking for revival since then. This deal is important for Nokia as it recently failed to get even a single 5G contract from the 3 Chinese telcos.
Curiopedia
At one point in time, Nokia was the market leader in the mobile phone manufacturing market. According to figures from analyst firm Gartner, Nokia’s global smartphone market share in 2007 was as high as 49.4%.
Hutch was one of the leading telecom operators before its takeover by Vodafone in 2007. Hutch was known for its unique marketing tactics and 2 of its most memorable marketing campaigns still ingrained in our minds are the Hutch Dog and Hutch’s “chota recharge” campaign. “Chota Recharge” campaign starred late actor Irrfan Khan in its advertisement and revolutionized TV ad campaigns.
Nokia Corporations gets its name from the Finnish town of Nokia. A river called Nokianvirta flows through this town. This tech giant was established on the banks of the river.
Curated Coverage
Comments