Nokia puts private wireless business on spotlight
Nokia has released another video to familiarise us with the company’s recent strategy shift. The video itself has a lot of artistic elements and does not show clear use cases of Nokia’s software solutions. Rather, it shows how Nokia is changing from a company that consumed a lot of resources to make phones to one that is more environmentally friendly than ever, trying to promote the circular economy and harness the potential of cloud networks.
The fact is that Nokia has been transforming for more than 150 years, according to the video’s opening statement, and this transformation is evident in inserts of various industries such as shipping, advanced agricultural production, heavy industry, modern cloud computing, transportation and the automotive industry. In between, there are scenes of animals and natural habitats to point us to the sustainability Nokia strives for each year.
While the new corporate strategy focused on B2B software in the cloud may seem a bit strange compared to the “old” Nokia that connected millions of people, the consumer mobile market has huge potential. Nokia got an early start there and so far has signed up over 560 customers, which may not sound like much. But that accounts for 52% of the current market, which has the potential to add about 14 million more commercial areas over the next decade. Nokia is not alone in this, as the Finns have teamed up with Ericsson to bundle their residential mobile customers to gain an advantage over Huawei and others entering the market.
Interestingly, at the peak of 5G, many thought end users would insist on it, but instead, most of them are still opting for 4G, which meets their needs perfectly. Moreover, the 5G ecosystem does not seem to be fully mature yet, so about 85% of network deployments are with 4G.
Even though it looks like Nokia is changing direction, the company is actually focusing on cloud computing and software services, just as it did with cell phones. Networks are still the core business, and Nokia will always protect this division, invest well, and be ready to embrace something new.
Fiercewireless did a nice piece on this so check it.