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Nokia Unveils New 5G Services, Passes 5G NR Trial in China

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Nokia Corporation NOK has announced that it will be launching a new 5G design concept and deployment services, which will help operators reduce time-to-market cost effectively. The company also revealed its successful completion of an end-to-end 5G New Radio (NR) data call in China. The 3GPP-compliant dual connectivity trial was conducted by the 5G Technology R&D team of the Chinese Ministry of Industry and Information Technology (“MIIT”).

What Nokia Expects from 5G Digital Design

The new services to be launched by the company will support operators to market 5G services faster. The 5G Digital Design, Cross-Domain Architecture and Site Evolution Services are some of the new additions to Nokia’s 5G Acceleration Services. These services are part of the company’s efforts to enable smooth deployment of 5G networks. It considers 5G Digital Design to be patent-worthy, conceptualized to restructure future network designs.

Nokia boasts a number of relevant technologies and services that enable it to constantly pursue new innovations and initiatives on the path to 5G. For instance, the Nokia AVA cognitive services platform, together with AI and machine learning algorithms, will support the 5G Digital Design replicate the impact of 5G use cases on networks.

Later, during full-fledged 5G network implementation, the company expects to use digital twin technology to present the technical and cost impacts of the actuality of 5G implementation. This will be very helpful for operators to optimize CAPEX and roll out 5G networks faster.

Motive Behind the Launch of New Services

The new Cross-Domain Architecture and Site Evolution Services help construe 5G business plans as brief and clear technical requirements across all domains. Cross-Domain Architecture provides operator-specific solutions to 5G use cases, simplifying the multivendor and legacy networks, and ensuring delivery of the required latency, transfer and reliability of networks.

The Site Evolution Services enable operators to quickly and cost-effectively upgrade their 2G, 3G and 4G networks to 5G, saving on both CAPEX and OPEX. Most importantly, this new service does not require any upgrade in infrastructure, and minimizes the number of site visits and changes. The site solutions are tested with reliable Nokia 5G equipment and promise to enhance sustainability and renewable energy options.

China to Lead in 5G Technology?

China is the second largest economy after the United States and the most populous country in the world. This makes it very important for telecom companies to focus on pushing their 5G network barriers in China, which will be among the firsts to adopt the technology.

Nokia seems to have successfully established a relationship with China in this matter with the recent 3GPP compliant over-the-air 5G NR data call trial. The trial was conducted using a 5G NR system on the 3.5GHz frequency band and LTE in the 2.1 GHz frequency band.

The equipment used to conduct the trial was provided by PRISMA Telecom Testing. Nokia and MIIT will jointly continue trialing 5G in the 4.9 GHz frequency bands through 2018.

Price Performance

Nokia’s continuous efforts in 5G and aggressive steps to secure its position in the 5G market look promising. In the past six months, the stock has outperformed the industry on an average, with an impressive average return of 26.1% compared with 4.5% rise for the latter.

Zacks Rank and Stocks to Consider

Nokia currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry space are Comtech Telecommunications Corp. CMTL, sporting a Zacks Rank #1 (Strong Buy) and Motorola Solutions, Inc. MSI and Ubiquiti Networks, Inc. UBNT carrying Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Comtech has an expected long-term earnings growth rate of 5%.

Motorola has an expected long-term earnings growth rate of 8%.

Ubiquiti has an expected long-term earnings growth rate of 18.6%.

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