Nokia Networks clinches billion dollar infrastructure deal with China Mobile

Nokia Networks is to provide China Mobile with its TD-LTE-Advanced technology and 2G, 3G and 4G core networks, including Voice over LTE (VoLTE), a deal worth €930 million (or 1 billion dollars).

The contract includes software and professional services, network planning, implementation and care. Nokia Networks will support China Mobile’s 4G network rollout during 2015 and beyond. The operator plans to install one million TD-LTE base stations by the end of the year to build the world’s largest TD-LTE network.

Nokia’s network infrastructure capacity and technical expertise will also be employed to help China Mobile build its Internet of Things (IoT) ecosystem, primarily for the Chinese health service and transport infrastructure. Nokia Networks and the China Mobile Research Institute (CMRI) have also signed a memorandum of understanding for joint cooperation in the development of 5G.

Nokia’s cooperation with China Mobile dates back to 1994 when the company supported China Mobile for China’s first GSM (2G) call in Beijing. As part of the 3rd Generation Partnership Project (3GPP), Nokia Networks developed TD-LTE as a global standard, according to Mike Wang, Nokia Networks’ President of Greater China. “This agreement will further accelerate TD-LTE development in China and around the world,” said Wang.

The agreement was signed on October 29 by China Mobile executive VP Li Huidi and Nokia Executive VP Hans-Juergen Bill in the presence of Chinese Premier Li Keqiang and German Chancellor Angela Merkel.

Nokia announced yesterday that it is running a trial 5G network in South Korea in conjunction with SK Telecom. In a joint test, they achieved 19.1 Gbps transmission speed over the air using 256 quadrature amplitude modulation (QAM), 8×8 Multiple-Input Multiple-Output (MIMO) transmission and 400 MHz of bandwidth.