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Nokia (NOK) Boosts Fiber Networks With First Ever 25G PON Launch

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Zacks Equity Research
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In an effort to reinforce the growing influence of enhanced fiber networks globally, Nokia Corporation NOK recently unveiled a 25 Gbps symmetrical PON (passive optical network) solution. The Finnish telecom equipment vendor is touted as the world’s first company to commercialize such state-of-the-art technology.

The symmetrical PON broadband solution operates on the back of Nokia’s existing PON hardware, such as access nodes, and will be available on the telco’s fiber access platform to provide high-end services with enhanced customer experience. The breakthrough platform complements Nokia’s commitment to implementing an advanced 5G ecosystem for its customers, especially at a time when majority of the service providers are shifting toward automated network operations for a modernized infrastructure.

With fiber networks rapidly becoming the backbone of the entire telecom industry, service providers are constantly working toward delivering best-in-class communication services to residential and business customers.

Nokia’s 25G PON is a cost-efficient solution that capitalizes on an experienced portfolio of data center optical technologies and boosts fiber broadband capacity while paving the path for near-term growth opportunities. Specifically designed to offer premium enterprise services, the innovative solution bolsters 5G by creating mobile transport on existing fiber access network. Further, it operates on Nokia’s Quillion chipset, which enables operators to deploy future-proof networks with faster time-to-market and low-latency performance.

In fact, the 25G symmetrical PON supports 5G cross-haul and has the ability to work in conjunction with XGS-PON and GPON on the same infrastructure without distorting the existing customer services. With the launch of this trailblazing technology, customers using 10 Gbps Quillion boards can also capitalize on the best-in-class capabilities of the 25G PON solution, which makes it all the more worthwhile among the new-age fiber broadband network users. Currently, Nokia has 34 XGS-PON and 300 GPON deployments around the world.

Considering the importance of advanced PON technology in today’s networking scenario, a consortium of optical component manufacturers and system vendors — 25GS-PON MSA Group — has been recently formed to drive the standardization of the newly launched broadband technology. Some of the companies involved in this coalition are MaxLinear, Inc. MXL, Ciena Corporation CIEN and Chunghwa Telecom. Notably, the early deployments of 25G PON solution are reportedly scheduled to take place in the second half of 2021. It is to be seen whether these deployments can propel Nokia’s network expansion strategies.

Nokia’s shares have gained 15.1% compared with the industry’s growth of 35.9% in the past year. This Zacks Rank #4 (Sell) stock delivered a trailing four-quarter positive earnings surprise of 37.5%, on average.

A better-ranked stock in the industry is Aviat Networks, Inc. AVNW which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Aviat Networks pulled off a trailing four-quarter positive earnings surprise of 11.8%, on average.

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Nokia Corporation (NOK) : Free Stock Analysis Report
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