Nokia unveiled the world’s fastest network chips on Wednesday, entering the Cisco and Juniper-dominated chip crusher market and boosting its activity in the existing network.
The new routers can handle the increasing demands of virtual reality programming, Internet services and cloud-based mobile communications in the next generation, said the Finnish company.
Nokia’s new products, starting with the acquisition of its 15.6 billion-euro ($ 17.5 billion) IP network operations in 2016 and Alcatel, should help conquer companies like Facebook Google, Apple, and Amazon. For these “Internet-scale” customer speed is everything and unlike traditional Nokia telecom customers, they still increase network equipment costs.
The routers are compatible with the previous products and also serve existing Nokia customers who want speed but still face the existing equipment needed to run the existing services.
“Nokia will have the most powerful system capability in the market, and many of these web climbers, they want speed,” said Ray Mota, chief analyst at ACG Research, told Reuters.
Former Alcatel IP network company is already No. 2 edge routers in the world behind Cisco, Juniper Networks has moved, which is now number 3.
The Nokia company also competes with Huawei routers in markets outside the United States, where a private Chinese company is banned for national security reasons. Nokia executives expect to have market shares of top competitors such as Cisco and Juniper and Huawei.
“If markets via the Web or vertical (such as banks, transportation, energy and the public sector), where they were least exposed to the routers, there is no doubt winning, dig equipment equipment .” said Nokia CEO Rajeev Suri, Reuters.
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“This gives us a boost in basic routing.” Simon Leopold, a financial analyst at Raymond James, said Juniper, who relies on a quarter of sales customers via the web, such as Facebook, could be the most hit. “There is at least a risk for Juniper, once Nokia comes,” he said.
Shares of Juniper Networks fell 2.4 percent to $ 28.60, while Cisco fell 1 percent. $ 100 to 31.38. Nokia for listed shares plunges just under 1 percent.
Nokia said it introduced its latest silicon chip PF4 can process data at 2.4 terabits per second. The new chips are scheduled to be delivered in the fourth quarter, the routers that use PF4 loan chips in the first quarter of next year.
These will be integrated with the routers to operate in both high-speed “core” networks at the heart of the largest Internet services and “cutting edge” networks that connect data centers to serve front-line Mobile or fixed networks.
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The capital expenditures of telecom operators increased by only 2-3 percent per year, which means that Nokia is targeting gamers via the web with expenses on re-uploading equipment.
4 PM the chips, which are manufactured by the Nokia TSMC Taiwan, are designed using circuits as narrow as 16 nanometers, omitting circuits 22 and 28 nanometers relative to the FP3 processor previously built on a 40-nanometer scale, Nokia said.
Nokia introduced the petabit class 7950 router for the routing base market to help win business with customers such as Apple and Facebook. A petabit can broadcast 5000 HD video of two hours every second.