) wholly-owned subsidiary, Nokia Solutions and Networks ("NSN"),
has decided to add more location-aware capabilities to its base
This will be done through enhancing the company's Liquid
applications for which NSN collaborated with ChinaCache. NSN is
conducting trial runs with several wireless operators to test its
liquid technology. Notable among them is
SK Telecom Co. Ltd.
In July 2013, NSN entered into an agreement withcontent
delivery network operator CDNetworks Co.Ltd. to accelerate the
delivery of mobile content. Liquid technology is a software
solution for network infrastructure that drastically reduces the
need for dedicated hardware.
NSN stated that its liquid applications will change the
competitive landscape of the telecom infrastructure gear market
by revolutionizing the base stations.
With the massive growth of smartphones and tablets, the demand
for bandwidth has increased significantly. Instead of traditional
voice calls, data and video traffic are now consuming the
majority of bandwidth. This has resulted in network congestion
for telecom operators.
Bandwidth shortage generally occurs during rush hours and in
specific locations like offices and business centers. To address
this issue, telecom carriers have been installing new base
stations in the congested locations, involving huge
The liquid technology of NSN is a software solution that
shares all network resources across all wireless and broadband
networks. Therefore, carriers can now exploit their relatively
underutilized base stations in the rush hours to ease network
This will eliminate the need for new base stations. The liquid
technology eliminates computing power units from the base
stations and shares it throughout the network, which is similar
to cloud computing.
Notably, Nokia decided to vend its core mobile handset and
services division to
). The deal is expected to close in the first quarter of 2014.
Post the divestiture, NSN will become the company's chief
business division with approximately 90% of the total
Last year, some industry reports stated that Nokia intent to
) to strengthen its U.S. business, which the company ultimately
rebuffed. Currently, Nokia carries a Zacks Rank #2 (Buy).
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