Size matters in mobile, but Nokia may find bigger isn’t better
Size is power in the mobile networks business, but it’s only one of the reasons Nokia is acquiring Alcatel-Lucent.Nokia estimates the company that will emerge from the planned buyout will be the second-largest vendor of carrier infrastructure by revenue, a bit smaller than Ericsson and slightly larger than Huawei Technologies. In a price-competitive industry where technology is constantly evolving, that matters, analysts say. But size alone isn’t reason enough to justify the €15.6 billion (US$16.5 billion) deal.As consumers watch more videos and use more apps on mobile devices, vendors are developing new technologies on multiple fronts to make sure networks can keep up with the demand. Putting up more conventional cells doesn’t cut it anymore, so they’re turning to exotic approaches like millimeter-wave beams and LTE networks that can use the same frequencies as Wi-Fi. Vendors are already jockeying for influence over 5G, the next generation of wireless specifications expected by 2020.To read this article in full or to leave a comment, please click here