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Nokia Unveils 4G, 5G Network Slicing With Extreme Automation

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Nokia Corporation (NOK - Free Report) has launched 4G and 5G network slicing solutions, which will enable operators to deploy and manage network slices across multi-domain environments. The Finnish telco is the first vendor to unveil this technology. The milestone complements Nokia’s commitment to implementing an advanced 5G ecosystem for its customers, especially at a time when the majority of service providers are shifting toward automated network operations for a revamped infrastructure.

Nokia is focused on four strategic priorities. The first priority is to lead in high-performance end-to-end networks with its CSP customers. The second priority is relentless pursuit to expand network sales to select vertical markets, specifically energy, transportation, public sector, technical extra-large enterprises and webscale players. Building a strong standalone software business is the third strategic priority. Fourthly, it seeks to create new business and licensing opportunities in the consumer ecosystem. Network slicing is a new-age technology where slices of network are developed on the basis of use cases to deliver leading-edge services.

It is worth mentioning that Nokia’s end-to-end network slicing provides differentiated services in a profitable manner. As more and more vendors resort to cost-cutting initiatives, this platform comes as a boon as it helps in minimizing operational overheads and drive revenues with enhanced network capacity. Apart from 4G and 5G network slicing, Nokia introduced best-in-class controller and orchestration capabilities. This will not only assure service velocity but also automate the lifecycle management of slices on a real-time basis. These domain controllers benefit operators with simplified operations with utmost efficiency, thereby driving digital transformation.

This avant-garde 4G and 5G slicing technology complies with 3GPP and IETF slicing specifications. Equipped with robust automation architecture, the slicing management solution is a time-saving platform that will enable operators to speed up their operations for streamlined functioning. As a result, service providers will be able to deliver advanced slicing services for IoT and small and large enterprises. The solution is powered by Nokia’s Network Services Platform and assurance products, which works with Digital Operations Center service orchestration software for flexible deployment of network slicing services. The deliveries of this first-of-its-kind solution are likely to take place in 2020.

Currently, the equipment vendor is focused on developing its 5G portfolio on the back of its technological prowess. The company is building a strong scalable software business and expanding it to structurally attractive enterprise adjacencies. Nokia is well positioned to benefit from the ongoing technology cycle, given the strength of its end-to-end portfolio. Its portfolio includes products and services for every part of a network, which help operators enable key 5G capabilities, such as network slicing, distributed cloud and industrial IoT.

Nokia aims to accelerate its product roadmaps and cost competitiveness through additional 5G investments in 2020. The company is likely to benefit from expanding its business into targeted, high-growth and high-margin vertical markets to address several opportunities beyond its primary markets. Accelerated strategy execution, customer focus and reduced long-term costs are expected to position it as a global leader in the delivery of end-to-end 5G solutions. It is to be seen whether these deployments can provide a boost to Nokia’s network expansion strategies.

Nokia’s shares have lost 19.9% against the industry’s growth of 23% in the past year. This Zacks Rank #3 (Hold) stock delivered a trailing four-quarter positive earnings surprise of 37.5%, on average.



Some better-ranked stocks in the broader industry are Acacia Communications, Inc. , Cambium Networks Corporation (CMBM - Free Report) and Qualys, Inc. (QLYS - Free Report) . While Acacia sports a Zacks Rank #1 (Strong Buy), Cambium and Qualys carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Acacia pulled off a trailing four-quarter positive earnings surprise of 17%, on average.

Cambium delivered a trailing four-quarter positive earnings surprise of 126.4%, on average.

Qualys delivered a trailing four-quarter positive earnings surprise of 14.7%, on average.

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