The surge in Internet use in the face of the coronavirus pandemic, as millions of people turn to work from home have put enormous pressure on the internet, particularly in Europe. Nokia’s orders for broadband solutions have increased as customers increasingly want to upgrade their networks to meet customer demand, Reuters reported.
Sandy Motley, nokia’s fixed-network president, said some customers had hoped to expand their networks by 30 to 40 per cent over the next few years as data usage grew, but the COVID-19 outbreak had led to an overnight increase in traffic.
Fixed-line orders rose 22 per cent in the first quarter of 2020, Mr Motley said. To consolidate its solid network, the Finnish manufacturer acquired Alcatel-Lucent in 2016 in a deal worth nearly $17 billion. While its value fell 18 per cent year-on-year in the first quarter and 5 per cent between 2018 and 2019, Motley attributed the decline to the business cycle.
The European Commission wants all European networks to offer download speeds of at least 100Mbps by 2025. However, Stefan Vanhastel, Chief Technology Officer of Nokia’s fixed-network business, says it will take a considerable amount of time to install fibre-optic cables to improve the network. “Of course, we’re seeing operators starting to think about speeding up fiber-optic laying. “
Fixed broadband accounts for about 90 per cent of all Internet traffic in Europe, according to research firm Analysys Mason.