Nokia sees network gear demand recovering

Reuters News
Posted: Feb 26, 2017 7:48 AM

BARCELONA (Reuters) - Nokia <NOKIA.HE> sees demand for the higher speed 4G network equipment to begin to recover this year, led by Japan, the company's chief executive Rajeev Suri said on Sunday, while announcing a series of contracts with telecom operators.

Speaking at a news conference ahead of the Mobile World Congress in Barcelona, Suri announced a string of 4G and early 5G deals in Britain and the United States, that promise to help its core network business return to sales growth in coming years, he said.

The Finnish company had reached a "landmark", 3-year deal with Telefonica to build higher speed 4.5G networks in London, Suri said, adding that it had displaced a rival network supplier there.

Nokia also announced that it was working with U.S. telecoms carrier Verizon and semiconductor giant Intel to supply equipment for pre-commmercial 5G services in U.S. markets, including Dallas.

(Reporting by Eric Auchard, editing by Jussi Rosendahl)