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To enhance network efficiency, Nokia Corporation’s (NOK - Analyst Report) wholly-owned subsidiary Nokia Solutions and Networks (“NSN”) collaborated with Telecom Italia S.p.A. (TI - Snapshot Report) to test the HSUPA 16QAM (High Speed Uplink Packet Access) technology.

The experiment was aimed at enhancing network capacity and achieving data upload speeds of nearly 11 mbps. Telecom Italia has deployed the advanced Interference Cancellation receivers from NSN, thus helping the carrier to improve upload speed and battery life.

Generally, the Frequency Domain Equalizer boosts uplink speed by 10% to 20%. Thus, on integration with the HSUPA 16QAM technology, it will double the upload speed.

Recently, NSN received a major 4G LTE network upgrade contract of nearly $416 million from EE, a leading U.K.-based wireless operator. Per the contract, NSN will implement its Single radio access network (RAN) Advanced solutions which will enable the mobile operator to install different network standards (radio technologies) on a shared multi-purpose hardware.

In Dec 2013, NSN renewed its contract with the largest Taiwanese telecom operator, Chunghwa Telecom Co. Ltd. (CHT - Analyst Report) to supply infrastructure for the carrier’s HSPA+ network capacity expansion. Chunghwa intends to offer LTE services from mid-2014 and has selected NSN as its major vendor.

Hence, we believe that such aggressive deployment of 4GLTE network across China coupled with higher capital spending on network up gradation in India, Korea and Indonesia may drive the company’s top line going forward.

Nokia has decided to divest its core mobile handset and its services division to Microsoft Corp. (MSFT - Analyst Report). The deal is expected to close in the first quarter of 2014. Post the divestiture, NSN will become the company’s chief business division.

Nokia currently carries a Zacks Rank #2 (Buy).

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