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Nokia to splash out almost £11b on Alcatel-Lucent

Nokia has announced its intention to buy Alcatel-Lucent in a multi-billion pound deal. What will this news mean for consumers, and does it mean we might see some new phones wearing the Nokia badge?

Nokia Alcatel

Nokia’s purchase of Alcatel-Lucent will enable the advancement of the ‘Internet of things’.

The name Nokia is slowly being phased out by Microsoft (who bought out Nokia’s phone business in 2014), so that we’re seeing it less and less on production phones, but that doesn’t mean that Nokia, as a company, doesn’t exist.

In fact, if anything, Nokia’s star is on the rise again, although according to Reuters, it’s in an area where consumers might not immediately notice.

Specifically, it’s in terms of mobile communications infrastructure, and this boost in power is due to Nokia’s planned purchase of Alcatel-Lucent, for the princely sum of 15.6 billion euros (just over £11 billion).

The deal will see Nokia’s market share in the telecoms equipment business rise to 35%, putting the company second only to Ericsson, who has 40%, and above the 20% owned by Chinese company Huawei.

How will this affect consumers?

Naturally, the question that most people have been asking is: how might this affect consumers? Does it mean that we might start seeing new phones with a Nokia badge on them, once again?

The benefits may be somewhat ‘invisible’ to consumers, but they will exist; think in terms of things like improved call quality and internet speeds, due to networks having newer and more advanced equipment. See the infographic above for more.

What we won’t see, in all likelihood, is new phones wearing the Nokia badge; neither Nokia or Alcatel are in the phone business any longer, so we’re very unlikely to see any new Nokia mid-rangers to rival the likes of the Moto G.

And so, in spite of us not seeing any new Nokia phones, this deal has the potential to seriously improve the experience of using a mobile phone. Stay tuned for more news.

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