Nokia Corporation (ADR) (NYSE:NOK) sees 5G kickoff in 2017
Nokia Corporation (ADR) (NYSE:NOK)’s CEO, Rajeev Suri, is predicting that rollout of 5G wireless networks will begin in 2017. To drive the speedy upgrade to 5G, Nokia intends to boost investment in 5G technology this year so that it can have 5G-ready equipment for sale in early 2017. Part of the reason Nokia sees the shift to 5G happening ahead of 2020 is that customers are already demanding for the technology.
Nokia Corporation (ADR) (NYSE:NOK)’s Suri acknowledges that 2020 will be the year when 5G deployment will reach what can be described as global volume deployment. However, deployment action is expected to pick up pace in 2017, 2018 and 2019. Nevertheless, the initial 5G rollout will take place before key standards of the technology are formalized.
Formalization of key 5G standards is expected in 2018 and 2019. According to Nokia, 5G network rollout will be unlike the older generation networks 3G and 4G in the sense that a bit more equipment will have to upgrade before key standards for the technology are ready.
5G to boost Internet of Things rollout
It is expected that upgrade to 5G networks will pave the way for connecting far more items to the Internet. For example, while 2G, 3G and currently 4G are supporting the delivery of mobile voice, text, images and video on computers and phones, 5G will expand that connection to include cars, manufacturing plants, cities and many others.
Speaking at the 2016 MWC, Nokia’s Suri revealed that a number of customers have already contacted them for 5G equipment. For example, South Korea’s SK Telecom is hoping to have upgraded its networks to 5G ahead of the 2018 Winter Olympics. Additionally, Japan’s NTT DoCoMo is also working to shift its networks to 5G in time for the 2018 Olympics.
Still, another customer that Nokia Corporation (ADR) (NYSE:NOK) didn’t name is also interested in 5G to help it solve the problem of last mile connection for its local customers.
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