Recent changes made by Deutsche Telekom on a legal scale, alter the ledger of whitelisted network provider companies in Germany, as Nokia loses a Radi
Recent changes made by Deutsche Telekom on a legal scale, alter the ledger of whitelisted network provider companies in Germany, as Nokia loses a Radio Access Network (RAN) deal with DT, to rival Swedish telecommunications giant Ericsson, which is also behind some of the first world-scale movements to implement 5G networks.
Deutsche Telekom’s model trusted two companies (Nokia & Huawei Technologies) to supply RAN equipment in the German market. The new deal with Ericsson would have to replace a previous deal, in this case, the one made with Nokia, which is today Europe’s biggest service provider by sales.
Finish Nokia, was supplying RAN equipment to Deutsche Telekom in Germany until late last year when Ericsson showed up with a deal providing “5G-ready” gear across a big spectrum of the European country.
At the time Ericsson announced its deal in mid-December, it was unclear whether Nokia or Huawei had been replaced, something that is clear now according to Light Reading.
“It’s true that Ericsson replaced Nokia in parts of our network and that we’re working with Ericsson and Huawei,” said a spokesperson for Deutsche Telekom.
The deal is a major coup for Ericsson and could prove to be a significant loss for Nokia given the size and importance of the German market ads Light Reading.
Spending on RAN equipment will gobble up between 50% and 70% of the entire 5G budget, said Bruno Jacobfeuerborn, a senior executive at Deutsche Telekom, in a discussion with Light Reading last year. Nokia also previously acknowledged that major RAN deals are where most of the money lies.
Everyone seems to have forgotten Ericsson, and remember the company as the classic T-29’s mother, from where it appeared like the company was losing pace in the race for new generation mobile phones, which later upscaled to smart-phones, and/or other smart hand-held devices.
But, Ericsson was simply pulling its investments away from the mobile phone industry, focusing on next-generation networks, corporate level IoT systems, and R&D, something that is definitely going to payoff nowadays, possibly setting Ericsson back in the top 5 mobile/network companies worldwide, restoring its name for the 90s generation, while introducing a whole new level of corporate image for millennials who are stuck with Apple, and Samsung.
While Steve Jobs was focusing on the long-ride, Apple seems to be playing extremely volatile short-term cards lately, making almost clear that it won’t be around forever. On the other hand, companies which are not focusing on marketing and appeal to make a profit but on innovation and real long-term sustainable solutions will eventually prevail as we see in Ericsson’s case.