• Agreement at Heads of State political summit
• One year deal to supply network equipment and services
• R&D collaboration on vertical industries
• Germany and China key economic allies

It wasn’t just Audi that received some much needed political support from the German government in signing major deals with China (see yesterday’s LTE-V2X story here). Nokia has now announced that it had agreed a €1 billion, one year frame agreement to supply mobile, fixed, IP routing, optical transport, customer experience management technologies and operational support services to China Mobile.

Like the Audi and Huawei deal, the agreement signed at the fifth Sino-German Economic Forum, with the behind-the-scenes support of German Chancellor Angela Merkel and the Chinese Premier Li Keqiang. Why Germany? Because Nokia partnered with German industrial giant Siemens back in 2007 and ran Nokia Siemens Networks for a number of years (after Siemens pretty much gave up on telecoms) before folding the Networks operation into the parent company in 2013.

But it’s not just about providing vendor support for China Mobile's ongoing network transformation, the two companies have also agreed to collaborate to define the products and services that will enable the telcos to explore new opportunities in vertical markets. They have signed an MoU for research and testing of the AI and machine-learning capabilities of next-generation networks for the delivery of intelligent network optimization and radio resource management.

According to the China Daily newspaper, Li Keqiang suggested China and Germany should better align their innovation strategies in industries such as AI, smart manufacturing and autonomous driving, in order to reach bigger markets. According to Li in his keynote at the Forum, more than 2,000 Chinese and 7,000 German companies have invested in each other's markets.

It is worth remembering that Germany is China's largest trading partner in the European Union. Conversely, China is Germany’s most important trading partner outside Europe, with a trade volume of €186 billion.

Key Quote:

• "This is a highly significant agreement with our longstanding partner that consolidates Nokia's position as a leading provider of next-generation technologies and services in China,” said Mike Wang, President of Nokia Shanghai Bell.

Original Press Release:

Nokia and China Mobile sign EUR 1 billion frame agreement

• One-year, EUR 1 billion frame agreement for continued delivery of mobile, fixed, IP routing, optical transport, customer experience management technologies and operational support as well as services expertise throughout 2018
• Will enhance China Mobile's services in terms of speed, capacity and reliability and prepare for its upcoming next-generation network deployment
• Agreement signed at recent Sino-German Economic Forum

July 10, 2018

Berlin - Nokia and China Mobile have signed a one-year frame agreement - valued at up to EUR 1 billion - to support the Chinese mobile operator's transition to a future-oriented network infrastructure, while providing seamless connectivity to more efficiently meet growing data traffic **demand.

** 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. Nokia will provide additional elements of its mobile radio access and core portfolio in addition to fixed access, IP routing and optical transport, customer experience management, as well as its services expertise delivering the quality, speed and reliability needed.

Going forward, Nokia and China Mobile will work closely to define the products and services that will enable the operator to explore new opportunities in vertical markets. Nokia and China Mobile have signed a memorandum of understanding for research and testing of the artificial intelligence (AI) and machine-learning capabilities of next-generation networks for the delivery of intelligent network optimization and radio resource management.

The frame agreement builds on a longstanding relationship between Nokia and China Mobile in developing, trialing and deploying new technologies to enable seamless cloud connectivity and faster, more affordable internet access, meeting new demand while evolving networks for the future.

The agreement was signed at the recent Sino-German Economic Forum by Li Huidi, Vice President of China Mobile, and Hans-Jürgen Bill, Executive Vice President and Chief Human Resources Officer of Nokia and also Chairman of the Board of Directors of Nokia Networks GmbH & Co KG in Germany. The German Chancellor Angela Merkel and the Chinese Premier Li Keqiang also attended the forum.

Mike Wang, President of Nokia Shanghai Bell , said : "This is a highly significant agreement with our longstanding partner that consolidates Nokia's position as a leading provider of next-generation technologies and services in China. 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."