Boston, MA 12/18/2013 (wallstreetpr) – Nokia Solutions and Networks (“NSN”) which is a wholly-owned subsidiary of Nokia Corporation (ADR) (NYSE:NOK) has finalized a deal with Chunghwa Telecom Co. Ltd, one of the leading Taiwanese telecom operator. Although, the final terms in relation to finances have not been disclosed so far.
After the contract, Chunghwa has also renewed its earlier agreement with the Finnish company, under which it will act as the sole supplier of its HSPA+, thereby augmenting its network capacities further.
More about the deal
The Taiwanese carrier, Chunghwa Telecom chose to enter into a deal with NSN as it is looking forward to lay down 4GLTE networks across the country by the end of 2014. Under the deal, NSN will supply its supreme technology RAN (radio access network) which will greatly support the carrier to the Flexi Multiradio 10 Base Station. On top of this, NSN will also provide circuit-switched fallback (CSFB) technology, in order to facilitate LTE smartphone users to support the voice services.
Positive for NSN
In the recent past, the higher use of smartphones and tablets has led to network congestion. Therefore, to improve network speed, most of the carriers are constantly and actively upgrading their network capacity through the 4GLTE technology.Additionally, China Mobile’s,the world’s largest telecom operator, effort to establish almost200,000 TD-LTE base stations by the end of 2013, will further help grow NSN’s 4GLTE equipment business in Asia.
Increase Market share
Notably, NSN’s 4GLTE equipment is quite popular among carriers, especially after Huawei and Ericsson. NSN’s this division has generated $3.4 billion also as revenues during the last quarter of 2013. But, the division saw a considerable drop in revenues to nearly 38% in the last quarter in Asia Pacific region as against the previous year’s same quarter. Hence, the recent deal in Taiwan and China will definitely help augment the company’s top line.
