Nokia Corporation (NYSE:NOK) likely will get one step closer to being a prominent 4G network handset manufacturer now that Nokia Siemens has announced that it has opened a 4G network equipment manufacturing plant in Brazil with local partner Flextronics, with the goal to bring 4G capacity to wireless networks in South America – which includes Brazil, the host of the 2014 World Cup and the 2016 Summer Olympics.
Nokia Corporation (NYSE:NOK) has been working to develop much-improved handsets to work with Windows Phone operating systems by Microsoft Corporation (NASDAQ:MSFT), and those phones will soon be widely used on 4G networks across the U.S. as the major wireless carriers build out their networks over the coming couple of years. That will also become a reality in South America, as Brazil starting handing out 4G broadcast licenses in June. Several companies are working to expand their networks to met demand for the World Cup and Olympics, two of the biggest sporting events in the world. The companies are looking to provide the minimum necessary capacity in host cities for the 2013 Confederations Cup soccer tournament next spring, which is a tune-up for the World Cup.
Nokia Corporation (NYSE:NOK) parent company Nokia Siemens has secured deal with yet-unnamed wireless carriers in Brazil and Chile which are expected to roll out wireless 4G network in the coming months. About 13 percent of Nokia Siermens’ revenue comes from the South American region – a high share than the North America market. The expectation by the company si to leverage this opportunity to grow the company’s market share in the area from its current one-third level.
Nokia Corporation (NYSE:NOK) may also see itself on the front lines of a developing small-cell technology, which Nokia Siemens is developing with the help of chipmaker QUALCOMM Inc. (NASDAQ:QCOM). Small-cell technology is designed to enhance network capacities in smaller locations – which Nokia Siemens may be in great need as the world Cup and Olympics are held. When there is increased demand and a shortage of capacity, the idea of small-cell would help add capacity without the expense of building new antennas. Nokia Siemens is expected to begin installing small-cell technology in the U.S. and Japan by the end of 2013.