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Nokia-China Mobile Partner for AI Research in 5G Networks

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Nokia Corporation NOK recently inked an agreement with China Mobile Limited CHL to carry out joint research to explore the potential of artificial intelligence (AI) and machine learning in 5G networks in China. The strategic framework aims to pool in resources of both the companies for the overall improvement of the industry and is likely to be a win-win deal.

China Mobile is reportedly the largest telecom carrier in the world with about 899 million subscribers. By collaborating with Nokia, China Mobile seeks to establish a laboratory in Hangzhou, China, to develop a demo system that will evaluate the feasibility of newer applications within 5G ecosystem and leverage AI and machine learning capabilities by working in tandem with third parties. This will help both the companies to successfully address the booming market of the digital economy.

Nokia and China Mobile will jointly conduct thorough research and simulation tests utilizing state-of-the-art technologies and innovative products. These comprise Nokia 5G Future X architecture including Nokia ReefShark-powered AirScale Cloud RAN and AirFrame open edge server, and open API interface standardization by China Mobile. The research is likely to optimize future networks and enable the delivery of new Edge Cloud and 5G services, demand for which is expected to increase manifold with rapid proliferation of IoT devices for faster connectivity and wider coverage.

Nokia is a leading player in the mobile and fixed network infrastructure with the industry’s most complete, end-to-end portfolio of products, services and licensing. The company is driving the transition of global enterprises into smart virtual networks by creating a single network for all services, converging mobile and fixed broadband, IP routing and optical networks with the software and services to manage them. Leveraging state-of-the-art technology, Nokia is transforming the way people and things communicate and connect with each other. This includes seamless transition to 5G technology, ultra broadband access, IP and Software Defined Networking, cloud applications, IoT, as well as security platforms, data analytics and sensors.

With a diligent execution of operational plans, Nokia has gained 18.8% in the past six months on an average compared with a rise of 1.2% for the industry. Rollouts of next-generation 5G networks are anticipated to improve market conditions significantly in 2019 and 2020. Nokia’s Networks division is also expected to grow faster than the primary addressable market over the long term.

Nokia currently carries a Zacks Rank #4 (Sell). Better-ranked stocks in the industry include Motorola Solutions, Inc. MSI and Ubiquiti Networks, Inc. UBNT, both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Motorola has a long-term earnings growth expectation of 8%. It surpassed estimates in each of the trailing four quarters with an average positive earnings surprise of 12.1%.

Ubiquiti Networks has a long-term earnings growth expectation of 18.6%. It topped estimates thrice in the trailing four quarters with an average positive earnings surprise of 8.9%.

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