Editorial | Benefits of Nokia Finland’s NATO Membership | Editorial & Commentary

Tech giant Nokia surprised analysts on Friday by announcing it would buy American Infinera for $2.3 billion. The giant deal diverts public attention away from Nokia’s weak first-year mobile phone network business, particularly in North America and India.

We also remember how last December, Swedish rival Ericsson overthrew Nokia by securing a €13 billion deal right under its Finnish rival’s nose. US’s largest telecom operator, AT&T, has decided to buy 5g network equipment and software from Ericsson.

Perhaps Nokia’s new development can be seen through Infinera.

Infinera is not only a strong supplier of optical network solutions, but also a semiconductor manufacturer. Its revenue last year was $1.6 billion. With 60 percent of the company’s sales coming from North America, the company is strong in its home market. Only 17 percent of Nokia’s comparable businesses’ turnover comes from North America.

What’s particularly interesting about the store is its connection to artificial intelligence.

Nokia hopes to achieve combined benefits of €200 million when savings from procurement and manufacturing and streamlining supply chains are added.

Artificial intelligence and connectivity to data center operations are of particular interest to the store.

Artificial intelligence is driving significant investments in data centers, CEO Becca Lundmark said Friday. Optical solutions interconnect data centers. Connections within hubs and between servers are also based on them. Artificial intelligence and servers in data centers are a very important business in terms of security policy.

According to Lundmark, Nokia has already invested in the optical networks business since 2021 and now is the time to grow the business by acquiring a company.

See also  A strong statement from a top expert about Miikka Kiprusoff: "We need to talk seriously"

Nokia is one of the companies that benefits somewhat directly from Finland’s NATO membership. Its credibility as a supplier of secure networks has strengthened the company’s position in the North American market, from which Chinese network companies have been excluded. Nokia recently established a division to sell defense communications solutions to the US federal government.

In December, Lundmark said of mobile phone networks that the industry is not healthy as Nokia and Ericsson compete with each other. It will be interesting to see if Nokia can make Ericsson a competitor in the optical network solutions and semiconductor market as well.

Leave a Reply

Your email address will not be published. Required fields are marked *