Nokia connects with EUR 500 million in funding
Nokia has signed a 500 million-euro loan agreement with the European Investment Bank to strengthen its 5G research and development amidst a global race for setting the next-generation telecommunication standards.
The European Investment Bank (EIB) has authorised a 500 million-euro loan to the Finnish technology provider Nokia for further research into 5G, which is expected to enable a new generation of faster, high-responsive and more reliable networks.
Based on lower latency and omnipresent connectivity, 5G-enabled technologies could empower on-demand virtual and augmented reality, intelligent transportation, industrial automation, and other future technologies.
“5G is happening fast, faster than most people even expected,” states Alexander Stubb, VP for lending at EIB. “It’s anticipated that it will enable entirely new business cases, while dramatically enhancing existing wireless applications.”
The loan transaction is supported by the European Fund for Strategic Investments (EFSI), which is a part of the so-called Juncker Plan (Investment Plan for Europe) that aims to rally 335 billion euros in investments to EU member states to boost Europe’s economic and technological position in the world.
“Ensuring that Europe embraces and benefits from new technologies requires sustained investment. That is where the Investment Plan for Europe can play a crucial role,” says Jyrki Katainen, VP for jobs, growth, investment and competitiveness at the European Commission. “I am delighted that, with today’s agreement, the plan is contributing to Nokia’s research and development activities across multiple European countries to advance the development of 5G technology.”
Nokia recently closed a deal for its end-to-end network solution with T-Mobile, marking its biggest 5G deal to date. The global race for 5G standards is underway, and Nokia could be seeking to renew its success with the GSM standard at the turn of the ’90s.
“We are pleased to land this financing commitment from the EIB, who shares our view of the revolutionary nature of 5G, and the realisation that this revolution is already underway,” says Nokia CFO Kristian Pullola. “This financing bolsters our 5G research efforts and continues the broader momentum we have already seen this year in terms of customer wins and development firsts, supporting our relentless drive to be a true leader in 5G – end-to-end.”