U.S. Cellular, which is still deploying its LTE network, is unsure of how quickly 5G networks will take hold but its CTO thinks it will require a new waveform for the 5G air interface.
Alcatel-Lucent bosses confirmed they will press ahead with a planned €15.6 billion ($17.5 billion) merger with Nokia despite shareholder concerns about the transaction.
Ericsson CEO Hans Vestberg scheduled a meeting with senior management to discuss potential large-scale mergers and acquisitions that would help the company to compete against a merged Nokia and Alcatel-Lucent.
Nokia's acquisition of Alcatel-Lucent was cast into doubt by shareholders of the French-U.S. equipment vendor who are unhappy with the €15.6 billion ($17 billion) price agreed by the companies' managers.
Nokia said it is shifting its long-term strategy for its Nokia Technologies unit and will cut up to 70 jobs as a result. It's unclear at this point how Nokia's strategy for the division is changing.
Alcatel-Lucent CEO Michel Combes said a proposed take over by Nokia Networks is not affected by the companies' respective earnings in the opening quarter, after the French-U.S. equipment vendor's net loss increased year-on-year.
Alcatel-Lucent said it is still dealing with lower carrier spending in the U.S. but still managed to boost its overall revenue in the first quarter and improve its gross margins on higher sales of software products.
Nokia reported stronger sales in North America in the first quarter, and in its networks business overall. However, the underlying profit of the company's networks business fell, and investors grew worried about drooping margins.
Verizon Communications will move to a software-centric network architecture to reduce costs and deliver new services to customers faster. The company today announced that Alcatel-Lucent, Cisco Systems, Ericsson, Juniper Networks and Nokia Networks will be its five initial software-defined network vendors.
Nokia's integration of Alcatel-Lucent following the proposed acquisition of its rival will be difficult and messy. Some significant rewards will take many years to achieve, if ever. However, very large research and development demands with economies of scale and scope in 4G, 5G and with fixed-mobile network convergence make this kind of transaction inevitable and indispensable.