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Nokia Wins Big In China Mobile Contract Battle, But Will Networking Revenues Continue To Decline?


Ericsson and Nokia went head-to-head for the China Mobile opportunity and it appears Nokia came out on top.

To the winner go the spoils, but the size of this pie hasn't been publicly stated.

Nokia's virtual reality camera gets a price cut - potentially annihilating the accuracy of bullish analyst's sales forecasts.

Nokia (NYSE: NOK) wins 30% Share of China Mobile (NYSE:CHL) Network Expansion

As of April this year China Mobile's network had 833 million mobile subscribers with fewer than 50% of those using 4G data. Chinese users are rapidly adopting 4G and ndustry forecasts indicate that over 90% of mobile data traffic will be 4G by 2017. To satisfy this demand the China Mobile is building up 4G capacity as quickly as possible.

On August 17 China Mobile awarded Nokia a 30% share of the 2016-2017 new construction of broadband optical networks. Nokia's most up-to-date technology will be used in this roll-out, specifically its flagship packet-optical transport platform, the 1830 PSS-24x. The new packet-OTN switch provides up to 48 terabits capacity per rack, leading their industry where one competitor, Ciena (NYSE:CIEN), offers the 6500 T-series platform with 24 terabit capacity.

Ericsson (NASDAQ: ERIC) is also participating in this build, rolling out its technology in 14 provinces whereas Nokia is deploying in 19 provinces. Nokia's claim includes one of the largest Chinese markets -- that of Shanghai. Ericsson has not disclosed the provinces it earned.

Myanmar Network Expansion

Announced August 23rd, Nokia and Ooredoo have completed the launch of the first 4G service in Myanmar. Our highlighted company will continue earning revenues from the Myanmar national marketplace through the Care services and managed services division of the business.

Nokia will also provide Care services to its newly acquired work going to China. While Care services revenue are not broken out in earnings reports, Nokia reported that its Networks business revenues shrunk by 11% year-over-year during its second quarter reported August 4th, 2016. These results do not include the new...