Nokia Partners With Google to Build Cloud-Based 5G Network

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Nokia's 5G drone solution to be deployed in Belgium
Nokia's 5G drone solution to be deployed in Belgium

Although Nokia will put its 5G experience to bear, Google Cloud will act as a forum to deploy apps and assist consumers.

On Thursday, Nokia collaborated with Alphabet’s Google Cloud unit to develop 5G core network infrastructure and allow business customers to deliver services such as smart retail and digital manufacturing.

Cloud computing divisions of major technology firms, such as Microsoft and Amazon, also join up with telecommunications vendors before implementing 5G networks to corner a share of emerging technology companies.

Although Nokia will bring its 5G experience to bear, Google Cloud will act as a forum to deploy apps and help consumers develop an ecosystem of services.

“We will start to see some of these things to get in the live environment by end of this year,” Amol Phadke, Google Cloud Managing Director, told Reuters.

He added that the timeframe for the provision of networks will focus on telecommunications operators.

In October last year, Pekka Lundmark, Chief Executive Officer of Nokia, revamped the 5G plan of the Finnish group. Announcing a new plan in which the company would have four market classes, Lundmark said that Nokia will “do whatever it takes” to take the lead in 5G, while the Swedish competitor Ericsson and the Chinese Huawei Division lag.

“We expect to stabilise our financial performance in 2021 and deliver progressive improvement towards our long-term goal after that,” Lundmark said in a statement.

The company has reduced its 2020 operating margin estimate to 9 per cent from 9.5 per cent and predicts an operating margin of 7-10 per cent for 2021.

JP Morgan analysts said that higher research and development investment is expected to push margins lower than the average estimates of 10.9% for 2021. “Nokia is expected to find rising operating margins difficult due to its comparatively low market share, Liberum analysts said in a note.