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Nokia (NOK) Inks Deal With LG Uplus to Deploy Indoor 5G Solution

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In an effort to boost the communications industry with augmented 5G connectivity, Nokia Corporation NOK recently teamed up with LG Corporation’s subsidiary — LG Uplus — a South Korean cellular carrier. Interestingly, both the entities have been sharing a working relationship for quite some time now, and have worked on various digital projects, 5G and LTE.

As part of the partnership, Nokia will leverage its much-acclaimed AirScale portfolio to deploy small cell AirScale Indoor Radio (ASiR) systems across a number of indoor sites. This one-of-a-kind installment will not only reinforce the long-standing relationship between the two companies but also establish a streamlined 5G infrastructure while strengthening its footprint in the East Asian country.

Notably, the Finnish telco and consumer electronics company is focused on four strategic priorities. The first is leading in high-performance end-to-end networks with its service provider customers. The second priority is to expand network sales to select vertical markets, specifically energy, transportation and webscale players. Building a strong standalone software business is the third priority. The final priority is creating new business and licensing opportunities in the consumer ecosystem.

Nokia’s AirScale is touted as the industry-first commercial end-to-end 5G solution that offers massive capacity scaling with ultra-low latency. Moreover, it helps operators to curtail their future capital expenditures and maximize the value of both licensed and unlicensed spectrum while bridging the wide gap between IT and telco.

The AirScale Radio Access products deliver high-capacity mobile connectivity and minimize network complexity with low cost of ownership. One such offering is the ASiR system. This multi-technology solution is specifically designed for 5G evolution and provides enhanced indoor coverage with macro-grade level larger capacity. Equipped with a centralized architecture, this compact indoor solution caters to the connectivity requirements of both enterprise customers and consumers.

Driven by flexible deployments, it can also be upgraded to 5G New Radio and enables remote configuration, which makes it an ideal substitute for traditional and expensive distributed antenna systems. With better cell combination and splitting, the solution comprises Nokia’s Digital Baseband unit and ASiR-pRRH, a high-power access point.

The innovative offering will be deployed in indoor environments like offices and shopping malls to facilitate seamless 5G connectivity with future network expansion across South Korea as part of the alliance. With this, the AirScale system is expected to complement Nokia’s existing solutions while enhancing LG Uplus’ 5G offering with utmost value, thereby creating a win-win situation for both the entities.

Despite strength of its end-to-end portfolio, Nokia has long been struggling to restore its leadership position in the emerging markets. Nevertheless, distinct strategies and positive endeavor like this on the back of its technological prowess is likely to enhance its cost-effective and automated 5G network operations, especially when it is aiming to walk the extra mile to revive its faltering 5G business. Sharpened customer focus and reduced long-term costs will further bolster its product roadmap and cost competitiveness through incremental 5G investments.

The Zacks Rank #2 (Buy) stock has returned 21.6% compared with the industry’s growth of 61.2% in the past year.

Some other top-ranked stocks in the broader industry are Ubiquiti Inc. UI, Cambium Networks Corporation CMBM and Sierra Wireless, Inc. SWIR. While Ubiquiti and Cambium sport a Zacks Rank #1 (Strong Buy), Sierra Wireless carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ubiquiti delivered a trailing four-quarter earnings surprise of 37.1%, on average.

Cambium delivered a trailing four-quarter earnings surprise of 128%, on average.

Sierra Wireless has a long-term earnings growth expectation of 12.5%.

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Nokia Corporation (NOK) : Free Stock Analysis Report

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