Nokia outlines milestones and growth opportunities within the mobile infrastructure and operator services businesses; launches new WCDMA 3G base station

June 14, 2004

4 Min Read

HELSINKI -- At the Nokia Connection 2004 event in Helsinki today, Nokia highlights this year's growing momentum in the global mobile infrastructure market, as well as the progress Nokia's Networks business group is making in leveraging this positive trend.

Speaking at the event, Sari Baldauf, Executive Vice President and General Manager, Networks, Nokia, reiterated that Nokia is taking the lead in rolling out EDGE and WCDMA 3G, innovating core solutions such as push to talk, and growing its operator services business - three areas of success that concretely support Network's strategy to become the world's leading enabler of mobility.

"Nokia's position in mobile networks is solid as the global infrastructure markets are beginning to rebound," says Sari Baldauf. "The networks business is increasingly segmenting into three areas - radio and core networks, and operator services - where we have identified key focus areas and growth opportunities for Nokia. Our strategy is already bearing fruit, as shown by our long-term track record in delivering state-of-the-art radio networks, including over 40 replacement cases, the success of our leading core applications, such as push to talk, and our recent wins in managed services."

"The trend in 3G is positive," adds Ms. Baldauf. "We are continuing to innovate in WCDMA 3G, as service deployment picks up steam and mass demand approaches the tipping point. Also, we continue to focus strongly on key markets such as the US and China. In China we're successfully trialing WCDMA and are ready to move ahead after licensing is finalized. For the US, we have an impressive track record in GSM/EDGE and an attractive offering for US frequencies for WCDMA/HSDPA."

After two-years of dampened demand and investments, the mobile industry is focused on bringing value and innovation to mobile users. Nokia sees the mobile infrastructure market for 2004 trending slightly upward, as operators ramp up investments in their GSM/EDGE networks and roll out WCDMA 3G. Nokia alone has announced well over 20 radio access network deals this year, the most of any vendor, and more than three times the number of Nokia contracts in the same period of 2003. Around 100 million people have joined the ranks of mobile subscribers since the beginning of this year, including more than three million new WCDMA customers, more than doubling the total 3G subscriber base to nearly six million.

With a large number of mobile operators launching their 3G businesses this year, 2004 is clearly the pivot year for wide-scale commercial 3G. Nokia is taking the lead in WCDMA 3G and is well-positioned to take full advantage as 3G breaks out into the mass market. Nokia supplies WCDMA 3G to over 40 operator customers and has supplied 15 of the 33 commercial WCDMA 3G networks deployed to date. Also, Nokia is moving ahead strongly in developing HSDPA, a cost-efficient upgrade to WCDMA radio networks that increases peak data rates beyond 2 Mbits/sec and further enhances quality of service. Nokia's WCDMA solution can be software upgraded to provide HSDPA. Nokia is already undertaking a number of HSDPA trials with leading global operators.

To give operators a cost-effective way to make the most of the drive toward 3G roll out, Nokia is launching at Nokia Connection 2004 the Nokia MetroSite 50, a new WCDMA base station that makes it possible to quickly build WCDMA coverage and radically expand its footprint for cost-efficient coverage in mass markets. The MetroSite 50 base station is a unique and cost-effective site solution well suitable for markets such as China and the USA, where fast deployment to achieve full coverage is a key target right from the beginning.

Nokia's also forges ahead with push to talk. Nokia's Push to talk over Cellular (PoC) solution is being rolled out in networks with a total subscriber base of some 100 million subscribers, highlighting the solution's strong potential. Nokia has concluded commercial contracts with 13 operators so far, including major projects in Europe. Nokia expects several commercial push to talk services to be launched in GSM/GPRS networks during the next few months. Because interoperability is a key factor for mass-market adoption of push to talk services, Nokia fully supports the upcoming OMA standard for push to talk.

Nokia's track record in other core-network based solutions - with over 100 core solutions sold in 2004 alone - also confirms Nokia as a leading vendor in new core solutions. Nokia is marking this progress at the Nokia Connection 2004 by announcing the commercial availability of its IP Multimedia Subsystem solution.

Managed services within the operator service business are likewise gaining momentum. This year alone, Nokia has secured three new contracts in this growing business. Having provided turnkey deliveries for 24 customers in 20 countries, and with a strong global service organization and partner network behind it, Nokia has solid credentials in operator services. Currently over 25% of Nokia's Networks business group's revenues come from the operator service business.

Nokia Corp.

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