Nokia Inc. (NOK) is betting 5G will be the next bastion of growth for the global telecom equipment maker and is gearing up to showcase just how big it will be at the IEEE Globecom 2016, a telecom conference held in Washington this week.
During the conference, Nokia is planning to showcase how 5G can save wireless network operators money and can deliver increased capacity and faster speed to serve the number of connected people, machines and devices, which is expected to explode when 5G hits the market.
Nokia Shows Off 5G
Nokia said it plans to demonstrate a spectrum access system that will enable operators in the U.S. to use shared spectrum that would enhance in building and outdoor 4G coverage while reducing the cost of operation; its Intelligent Traffic Steering, which will show how operators can use multiple access technology to improve traffic patterns, and Network Slicing, which will enable operators to meet the demands of multiple users and device on the same hardware network.
"We have defined a technology path to 5G that will allow operators to deliver enhancements in capacity and speed and take advantage of the new possibilities created by the connected world,” said Hossein Moiin, the chief technology officer of Nokia's Mobile Networks business group, in a press release highlighting its plans during the confab. “While mobile broadband demand will continue to be driven by use of ultra-high definition video, the ever-growing number of connected machines as well as the need for low-latency and ultra-reliable networks will drive the creation of new opportunities for mobile communications networks.”
Making Big Bets on 5G for Its Future
With Nokia and other telecom players struggling in a saturated handset market, they have been looking for new areas of growth, and one is 5G, which Nokia is focusing on in a big way. Earlier this month, Nokia CEO Rajeev Suri said 5G will play a key role in the adoption of IoT—the Internet of Things, devices that connect to the internet and can communicate with each other—and that Nokia plans to be a leader there. (See also: Nokia CEO: 5G, IoT Will Drive Growth.)
“With the [IoT], billions of devices are connected. Everybody, everything is connected. All of those is enabled by 5G because when 5G was conceived, the idea was to be able to have a technology that enables many, many things to be connected,” said Suri. “So I think 5G enables IoT. And IoT brings time back to people like us, consumers. We will get more time. We will get more productivity in our lives. But more importantly, there will be a lot of productivity coming to various kinds of companies in various sectors.” (See also: Nokia Warning Catches Analysts Off Guard.)
The way Suri sees it, Nokia’s dominate position in 4G and its plans with 5G position the company to benefit from the growth of the IoT market. Suri argued Nokia is the leader in 4G around the world with more than 30% market share, which puts it in a good position to “lead the industry” when it comes to 5G.