Nokia to Support China Mobile With Next-Gen Technology in $1.17 Billion Deal
The stocks of China Mobile and Nokia inched up in New York on Tuesday after the companies struck an agreement at the Sino-German economic forum.
China Mobile Ltd. (NYSE: CHL) and Nokia Oyj (NYSE: NOK) signed a one-year 1 billion euro ($1.17 billion) frame agreement this week, under which the Finnish network gear maker will provide the Chinese telecom company with seamless connectivity and support in its network upgrade.
The announcement of the deal sent the stock of China Mobile up 14 cents to $45.47 per American depositary share on Tuesday.
At the same time, Nokia's shares gained nearly 2 percent, closing at $5.95 per share.
The stocks of China Mobile and Nokia inched up in New York Tuesday after the announcement of their one-year 1 billion euro partnership.
(Source: Thomson Reuters Eikon)
In a statement today, Nokia said, "Under the agreement, Nokia will provide China Mobile with best-in-class, end-to-end technology solutions to enable a next-generation network for the age of the cloud and machine communications."
The company said it plans to supply elements of mobile radio access, IP routing and optical transport to China Mobile, as well as provide expertise in customer experience and other services.
The deal was signed at the Sino-German Economic Forum this week by China Mobile's vice president, Huidi Li, and Hans-Jürgen Bill, Nokia's executive vice president and the chairman of Germany's Nokia Networks GmbH & Co. KG. The German Chancellor Angela Merkel and the Chinese Premier Keqiang Li also attended the forum.
The president of Nokia Shanghai Bell, Mike Wang, said in a statement today that its longstanding partnership with China Mobile is "highly significant" for the company.
"We are committed to delivering industry-leading, end-to-end capabilities that will allow operators to dramatically increase performance, which will introduce new possibilities for networks of the future," Wang said.
This contract follows Nokia and China Mobile's announcement made last Friday, in which the two firms said they plan to set up a lab in Hangzhou, China, to combine their efforts in research and development in artificial intelligence and 5G technology for services including virtual reality gaming.