Netease technology news on November 21, Reuters reported that on Wednesday, the head of Nokia's software business, Bhaskar gorti, defended his company against market concerns that Nokia was behind its peers Ericsson and Huawei in 5g technology development.

"I don't think we have a 5g problem," gordi told Reuters He pointed out that the development of 5g technology is a marathon, and many people focus on the first ten minutes of the race.

Photo note: Bhaskar gorti, head of Nokia Software Business

Last month, Nokia cut its earnings forecast for this year and next because it needed to invest more in 5g - a news that sent its share price down a third.

Nokia also suspended dividend payments on the grounds of cash savings and pledged to accelerate the introduction of a new generation of 5g chipsets.

This is in sharp contrast to Ericsson in Sweden. Just a week ago, Ericsson raised its market forecast for this year and its sales target for 2020.

Industry sources and analysts told Reuters that Nokia was in a mess waiting for the 5g radio standard to come into effect at the end of last year, while competitors accelerated the pace of product upgrading due to the expectation that the United States and South Korea would take the lead in launching 5g radio standards.

Amit hirchandani, an industry analyst at Citibank in London, said Nokia must show clear progress in the next few months in repairing and deploying 5g products to restore investor confidence.

Gordy said the 5g cycle consists of several different parts. He believes Nokia is ahead of its peers in software development, Internet of things deployment and wireless access.

"I personally believe that in the field of software development, we have at least two to three years or more ahead of our nearest competitor, Ericsson," he said

Move to software

In the third quarter of this year, the operating profit of Nokia's software business increased by 108% year-on-year to 156 million euros (US $172.6 million), surpassing the profit of Nokia's long-standing main business network business, which was 128 million euros.

Gordy said it is important to understand that 80% of mobile networks are actually composed of software. In the new 5g network, the process of network virtualization will only accelerate.

Virtualization means that mobile network hardware can be more and more replaced by cloud service operating software - a key development Nokia and its peers need to keep up with, because virtualization is now entering the wireless access network (RAN) technology. So far, most of the investment has been in this area.

Unlike Ericsson and Huawei, Nokia has chosen to participate in the development of open wireless access network technology, promising to support the interoperability of multiple suppliers, so that its operator customers will not be bound to one supplier.

"We believe that if there is any difference, it is that more things will run on a common platform, which will bring better economic benefits to all people," gordi said He also said Nokia is committed to supporting the development of open wireless access network technology in the future. (Liu Chun)

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