Headquarters of Finnish telecommunication network company Nokia are pictured in Espoo, Finland August 4, 2016.
Headquarters of Finnish telecommunication network company Nokia are pictured in Espoo, Finland August 4, 2016. Lehtikuva/Irene Stachon/via Reuters

Optus is collaborating with Nokia to launch a 5G network in Australia. The second largest telco in the country and the Finnish communications company have signed a memorandum of understanding (MoU) to work on a 5G research that they hoped to eventually overhaul Optus’ existing 4G network.

As the next step in mobile telecommunications, 5G is expected to increase data transfer speeds of mobile networks. Australian telcos currently use 4G LTE technology.

The collaboration will see the development of 5G, with the two companies running 5G tests using Optus’ 35000MHz spectrum. They will undertake an early 5G prototype in Optus’ band in Australia by next year.

“There is a global race to explore and develop 5G technology, and in Australia, Optus is well positioned to lead in this space with our ownership of 3.5GHz and close partnership with our vendors including Nokia,” Tay Soo Meng, group chief technology officer of Singtel, said.

Optus and Nokia have already run closed tests in Sydney on a new 5G radio test bed on Nokia’s Airscale, showing speeds that can support the delivery of virtual reality video content. The demonstration also showed “ultra-reliable low-latency” networking that enables new industrial use cases.

“5G is exciting and the potential use for 5G is growing. Through this partnership, the commencement of joint studies and in-lab and in-field testing, we are primed to explore this technology,” Tay said. “As we look ahead, Optus will explore new network architectures and use case trials with a specific 5G focus.”

Optus and Nokia’s collaboration will include promotion of 5G global standardisation and industrialisation, exploration and trials for new network architectures and applications, and the building of technology leadership in 5G.

Last month, Telstra also tested a 5G mobile network in partnership with Ericsson. It boasted that the test produced speeds faster than a lot of today’s mobile networks.