Nokia (NYSE: NOK) and Telefónica (NYSE: TEF) have formed an alliance to accelerate digital transformation for enterprises in Latin America. The equipment supplier and the mobile network operator will collaborate to offer and deploy Nokia’s end-to-end portfolio of industrial-grade private wireless network and digitalization platform solutions. The alliance will focus on the most promising industries in Latin America including ports, mining, energy, and manufacturing verticals.
“In this unprecedented alliance, the benefits of [4G] LTE and 5G private wireless will enable Industry 4.0 across industries,” comments Juan Vicente Martín, Director for B2B at Telefónica Movistar Empresas Hispanoamérica. Martín sees the application of Nokia private wireless network solutions helping to streamline productivity and efficiency of operations in multiple Latin American industrial sectors.
Nokia’s industrial-grade private wireless network solutions provide extensive broadband connectivity, with lower latency, greater predictability, and higher security, than alternative solutions. The company says its private network solutions are consistently being selected by several industries as the backbone for digital transformation projects.
Nokia sees private wireless networks as a key growth area to augment its primary sales of RAN and Core equipment to mobile network operators around the world. The company claims to have deployed mission-critical networks to more than 2,600 leading enterprise customers in the transport, energy, large enterprise, manufacturing, webscale, and public sector segments around the globe.
At the end of 1Q23, Enterprise sales accounted for 10 percent of the company’s $6.4 billion sales in the quarter. But Enterprise sales grew 65 percent on a year-over-year basis compared to 8 percent growth in sales communications service providers over the same period.
Telefónica is a dominant CSP in Latin America and can help Nokia extend its market reach. The Latin America region accounted for only four percent of Nokia’s 1Q23 sales compared to Europe and North America that together made up 54 percent of the company sales for the quarter.
Néstor González, Head of Customer Team for Telefónica Corporate, Nokia, says, “We are thrilled to partner with Telefónica, combining our leading Industrial-grade private wireless solutions with Telefónica Hispanoamérica’s growing B2B solutions and services footprint, to jointly reach a wide variety of enterprises and industries throughout the region.”
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