Nokia Ventures into Carrier Software by Acquiring Comptel on $370M

Nokia Ventures into Carrier Software by Acquiring Comptel on $370M

Nokia was once one of the leading technological entities in reference to making handsets or mobile phones. However, as time passed by, others bypassed it with the new inventions and innovations made on the same. These include Google who came up with android platforms, Apple with its own operating system and others that operated on the same platforms. This made it hard to compete and just the other day, Nokia is being seen to make a comeback by changing its direction and not living out of its handset legacy. Evidenced by the acquisition of the Comptel company is a step towards rebranding Nokia.

Comptel Company

This is a technological company that specializes in building softwares for mobile carriers. It provides solutions for data communications and softwares that are used by people all over the world. The company is said to process, record and analyze over 20% of data communications especially in reference to data usage on a daily basis. It is concerned especially with the currently developing markets in the world of data usage.

Comptel Company

Aim of the Acquisition

Software development continues to grow with each passing moment. Just the other day, the developments took a turn and now, virtual reality, artificial intelligence is part of our every day technological life. As technology gains power, different elements also have to change. Nokia is embracing this change and is doing it by moving into the software business. This business does have a long life ahead of it, but they will have to compete fiercely if they are to keep the market afloat.

How Will This Work?

The two businesses will be combined into one and the services will be one. The Comptel solutions and those of Nokia in regards to the carriers will be put together and sold to willing carriers. Their target markets include those that are in search of automation of their daily business activities and network operations. Services that the business will be offering include customer services, business orchestration and management and above all others self-optimization capabilities. Comptel aids this vision by bringing in a service that has its own cycle in the digital service, event processing, different applications and strategies for customer participation and monetization services. However, the most important of all is the emerging technological inventions especially in reference to IOT detections for patterns, and the context aware commercial service for different devices.

How Will This Work

Competition

The acquisition is a strategic move considering that the two companies will boost each other’s competitive capabilities. The combination will result in a fierce company that will have a chance at competing with the current giants in the business. By rebuilding and rebranding the companies portfolios, brand profiles and values and developing a new culture, the capability is further enhanced. Furthermore, the two will have a better regional control and be able to outdo other tech companies surrounding the area include Ericsson. Others are Cisco and Amdoc all located in Finland and competing against the new acquisition. Furthermore, the new resources acquired though Nokia, will contribute to the expansion and growth of the business to the desired level. Comptel brings a lot to the table as well including an already operational software carrier being used by different entities to sell carrier services and an already formed base to be used to increase or expand the services sold at any given time.

What is Commended in Regards to Nokia’s Acquisition?

The Nokia Company has faced many challenges and has appeared on the news on a regular basis in regards to its feud with Apple. However, it is now being seen to take a different route and conceding its handset legacy and leaving it behind to venture into new markets. This is evidenced by the sale of the Nokia mapping unit, the purchase of the Alcatel Lucent, the move to the IOT platforms including digitalized health care among others. The company is also venturing into hardware, something is bound to come out soon, and it is definitely going to be a huge comeback for this technological company.

Nokia’s Acquisition

Future

The deal between Nokia and Comptel is yet to be signed and sealed. A little bit of convincing for the shareholders is needed to make this possible for both Comptel and Nokia. The shareholders have to agree and decide whether they are willing to wait and see the outcomes of the acquisition or not. I believe this is dependent on how good the numbers are in regards to revenue generated once the acquisition is complete, how long that might take and what has been implemented to ensure that the success described or intended is acquired.

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Conclusion

The deal is a comeback for Nokia, which indicates the company hasn’t lost the will to continue as a technological company. The new route it is taking does have its opportunities but also challenges. Once the deal is signed, the company is bound to face many challenges and we are all waiting to see how the rebound works and if it works at all. Therefore, it is important to keep glued to the advancement of this specific deal, what comes of it in the near future and if it is what was anticipated.