Nokia’s Broadband Business Booms Amid COVID-19 Pandemic

Finnish telecom devices manufacturer Nokia is witnessing an increase in orders as its broadband clients race to enhance networks to meet higher user demand amid the Covid-19 pandemic. Sandy Motley, Nokia’s President of Fixed Networks, said that a number of customers had intended to grow their network by 30 per cent to 40 per cent over the coming few years considering a similar growth in traffic, but Covid-19 produced that traffic growth overnight.

Nokia’s Broadband Business Booms Amid COVID-19 Pandemic

She further added that “Customers will need to accelerate the growth that they had planned in the future, and we’ve seen customers already talking to us about that”.

Nokia advanced its fixed-line networks business with the 2016 acquisition of Alcatel-Lucent in a $17 billion deal. The unit’s revenue dropped 18% year-on-year in the first quarter and another five per cent between 2018 and 2019 but Motley told that the decline was because of the business cycles. “We have seen some updates from our customers… but we think a lot of this drive will be more medium term and long term,” Motley said.

The European Commission has suggested that by 2025 all European households, rural or urban, should have access to networks providing download speeds of at least 100 MBps. However, It takes time to create a new fixed network as the installation of fibre cabling can’t be done instantaneously.

According to a report by research firm Analysys Mason, Fixed broadband provides about 90 per cent of all internet traffic in the European continent. In 2019, Nokia’s Fixed Access business amounted to around ten per cent of the firm’s main networks business sales, with Mobile Access accounting for 64 per cent.

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