ESPOO (dpa-AFX) - Finnish telecommunications company Nokia Oyj (NOK) Tuesday said that it has signed a 5-year contract with energy company E.ON SE (EOAN.MI, EOAN.DE, EONGY) to modernize the latter's mission-critical communications network.
The project will begin in Germany and will create a highly automated and efficient telecommunications system for distribution system operators or DSOs and is expected to later serve as a model for other E.ON operations across Europe, the company added.
Nokia said that as per the terms of the agreement, it will provide its full range of next-generation networking solutions, including IP routing and switching, optical transport, fixed broadband access or XGS-PON, and network automation technologies. This foundation is also expected to support future advancements, such as quantum-safe networks, the company said in an official statement.
The company said that by installing its advanced chipsets, the new network will reduce energy consumption by around 50 percent compared to E.ON's current IP and optical infrastructure. It will also improve scalability, flexibility, responsiveness, and service continuity and also help E.ON respond faster to any service issues without delays, Nokia said.
Commenting on the agreement, Eleftherios Papadopoulos, Managing Director, Germany, Nokia, said, 'What sets this project apart is the ability to deliver across all key domains as a single vendor. That end-to-end capability, combined with high-quality platforms and proven experience in mission-critical environments and telecommunications, perfectly positions us to enable E.ON to digitize its grids in Germany.'
On the NYSE, NOK ended Monday's trading at $6.36, up 0.95 percent.
On the XETRA Exchange, EOAN.DE is up 0.25 percent on Tuesday's trading at 16.10 euros.
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