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Nokia Alcatel-Lucent acquisition – a new beginning for Nokia?

News
November 8
by chris eilers

Nokia strategy to co-operate with third party company has been proved through their agreement with HMD Global. But not many Nokia fan know that before the co-operation with HMD, Nokia had successfully acquired Alcatel-Lucent, a French telecommunication company. So how will Nokia Alcatel-Lucent acquisition influence on Nokia comeback?

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Nokia find a way back with Nokia Alcatel-Lucent

After months of negotiations, Nokia officially acquired the French telecommunications equipment – Alcatel-Lucent. Nokia Alcatel-Lucent is a $ 16.5 billion deal, which is the biggest deal in the history of Nokia, which is expected to bring Nokia a strong growth after a long silent time.. Reportedly, 100 thousand employees of Alcatel-Lucent worldwide remains the same. Its headquarter moved to Finland and they will focus on France, Germany, China and USA. Generally, Nokia would possibly become one of the largest telecom operators in the world.

The Chairman of Nokia, Mr. Risto Siilasmaa, confidently claimed that Nokia Alcatel-Lucent will contribute to accelerate the development of 5G network technology, Internet of Things, and cloud storage technologies. Till now, many people believe that Nokia sold their mobile segment is to avoid the increasing competition with many new phone company from China. Nokia transformed itself into the telecommunications sector, which can be seen as a new direction for the future. Anyway, we have to wait a few more years to see the next step of Nokia.

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After the defeat in the mobile segment, Nokia is betting the future on telecommunications infrastructure – the business segments didn’t use to really need. If you look at the smartphone market, Nokia don’t even reach the top 5 popular. However, Nokia is still the network equipment segment. After selling mobile segment for Microsoft, Nokia Networks is almost everuthing Nokia had. However, this is still a bloody ocean for this Finnish company in wireless infrastructure.

Nokia Alcatel-Lucent acquisition aims

The acquisition of Alcatel-Lucent will help Nokia to become the leader in telecommunication world. Buying Alcatel-Lucent is awaited to help them achieve an annual turnover of 17.4 billion euros (18.6 billion dollars) while 51 billion euros is Nokia’s peak in 2007. We will know soon how Nokia will be after coming back. At least the company is committed to join the “game” again. Stay tuned and keep track with what Nokia is doing!