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Nokia-Siemens Network (“NSN”) was selected by TIM Participacoes SA (TSU - Snapshot Report) (or TIM Brazil) to upgrade the existing 2G and 3G networks of the latter with a LTE (Long Term Evolution) network in the 2.6 GHz band.
Previously, NSN – a 50-50 joint venture between Nokia Corporation (NOK - Analyst Report) and Siemens AG (SI - Analyst Report) – had installed the Latin American carrier’s 2G and 3G networks.
As part of the contract, NSN will deploy its award-winning Flexi Multiradio base station, which is a radio access network (RAN) used for 3G, FDD(Frequency Division Duplex)-LTE and TDD (Time Division Duplex)-LTE. This latest technology will allow the Brazilian operator to augment its site to 2.6 GHz, reducing expenditure on time, space and power consumption.
NSN will also upgrade TIM Brazil’s NetAct network management system which offers effective monitoring and optimizes utilization of its network. Additionally, the equipment vendor will also deliver its Intelligent Self organising Networks (iSON) that will allow faster rollout by automating certain operations.
TIM Brazil won LTE spectrum in Jun 2012, and will initially be implementing the superfast network in cities, which will be hosting this year’s Confederations Cup and World Cup Football 2014. TIM Brazil’s effort is to match the government’s initiative to keep the country well connected, which will host many tourists during the major tournament next year.
Deployment of this ultra-fast wireless broadband service comes on the heels of the ongoing concerns posed by the Brazilian regulator Anatel over the quality of the mobile data service in Brazil.
Of late, NSN has won several contracts worldwide, despite facing stiff competition from the Chinese vendors. Recently, NSN won a similar contract for its Flexi Multiradio base station from Telefonica SA (TEF - Analyst Report), for its Chilean subsidiary.
Mexico and Brazil are some of the few Latin American countries where LTE deployment has started, while some other developing nations in the region are in the process of rolling out LTE. We believe that implementing the LTE contract for the telecom giant will strengthen NSN’s position in the Latin American market.
Nokia currently carries a Zacks Rank #3 (Hold).