Nokia (NOK) Secures 100 5G Deals on Technological Prowess
Nokia Corporation NOK has reached 100 5G contracts with communications service providers, marking an important achievement in the highly competitive market. The Finland-based telecom equipment provider has an aggregate of 160 5G engagements with operators, from deals to paid trials. It currently has 34 live 5G networks, both public and private.
The company secured 17 new 5G deals in the third quarter of 2020, which underscores its progress in strengthening the mobile radio product portfolio. Nokia has been developing its 5G portfolio, strengthening AirScale and advancing the capabilities of its ReefShark chipset. It aims to accelerate product roadmaps and cost competitiveness through additional 5G investments in 2020.
Importantly, Nokia has a presence in all 5G early adopter markets. Its 5G technology has been contracted by the top four U.S. operators, which includes Verizon VZ, T-Mobile TMUS and AT&T T, as well as by the top three in both South Korea and Japan. Also, the company’s 5G portfolio is gaining traction among enterprise customers that make up 12% of Nokia’s 5G deals. It has 180 private wireless enterprise customers around the world. Notably, many of its customers are expected to migrate to 5G.
The company’s end-to-end portfolio includes products and services for every part of a network. This helps operators enable key 5G capabilities such as network slicing, distributed cloud and industrial IoT. It facilitates customers to move from an economy-of-scale network operating model to demand-driven operations by offering easy programmability and automation.
In February, Nokia launched a new end-to-end slicing network functionality for 4G and 5G New Radio. The solution supports connectivity from 4G and 5G devices over the sliced network to applications running in private and public clouds. In April, the company introduced the industry’s first Dynamic Spectrum Sharing solution that supports spectrum sharing among 2G, 3G, 4G and 5G.
In June, Nokia completed the first phase of the world’s largest deployment of Dynamic Spectrum Refarming in India together with Vi (Vodafone Idea). In July, the company introduced a new 5G standalone industrial-grade private wireless networking solution for enterprises, bringing an end-to-end portfolio of high-performance LTE and 5G solutions in the market.
Nokia seeks to expand its business into targeted, high-growth and high-margin vertical markets to address opportunities beyond its primary markets. It had earlier announced plans to accelerate strategy execution, sharpen customer focus and reduce long-term costs. This, in turn, is likely to position the company as a global leader in the delivery of 5G solutions. Nokia is the only global supplier committed to Open RAN with commercial 5G Cloud-RAN networks.
Nokia’s shares have added 20.9% in the past six months compared with 38.6% growth of the industry. The company has a long-term (three to five years) earnings growth expectation of 15.6% compared with the industry’s 15%.
Nokia carries a Zacks Rank #3 (Hold), at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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