Nokia Corporation (NOK - Free Report) has inked a multi-year contract with Vivacom, a leading fiber access provider in Bulgaria, to expand the latter’s GPON network and introduce XGS-PON. The financial terms of the deal were not disclosed.
In July 2020, Vivacom was acquired by the United Group, which operates in eight countries in the Balkan region. In this project, Vivacom selected Nokia as a sole network equipment supplier. Currently, Nokia has 34 XGS-PON and 300 GPON deployments around the world.
Vivacom is focused on augmenting its broadband coverage across Bulgaria. The service provider intends to enhance the GPON network into new areas. It will replace active Ethernet infrastructure with PON and upgrade top-tier customers to XGS-PON.
The XGS-PON will help Vivacom deliver 10Gbps broadband services to residential and business customers. The high capacity fiber networks will complement Vivacom’s mobile network as well as reinforce its position for the 5G era. Nokia’s solution will enable Vivacom to undergo a seamless network modernization by leveraging the existing assets and making additional investments.
The rollout is based on Nokia’s Lightspan series FX. The Lightspan FX series of high-capacity access nodes address huge scale fiber deployments. The solution supports multiple PON technologies and point-to-point services at the same time. Nokia has deployed more than 1,300 mission-critical networks with customers in the transport, energy, large enterprise, manufacturing, webscale and public sector segments.
The company is well positioned to benefit from copper and fiber deployments of passive optical networking. The company expanded its IP routing business into the data center market. Nokia seeks to expand its business into targeted, high-growth and high-margin vertical markets to address opportunities beyond its primary markets.
Nokia is focused on its strategy that broadly hinges on four priorities. The first priority is to lead in high-performance networks with its communications service provider customers. The second one is expansion of network sales to select markets, specifically energy, transportation, public sector, technical extra-large enterprises and webscale players. Building a strong standalone software business is the third priority. Fourthly, it aims to create new business and licensing opportunities in the consumer ecosystem.
Nokia’s shares have added 19.6% in the past six months compared with 39.1% 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.
Some better-ranked stocks in the broader industry are Corning Incorporated (GLW - Free Report) , Ooma, Inc. (OOMA - Free Report) and Viasat, Inc. (VSAT - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Corning delivered a trailing four-quarter positive earnings surprise of 39.9%, on average.
Ooma delivered a trailing four-quarter positive earnings surprise of 238.9%, on average.
Viasat delivered a trailing four-quarter positive earnings surprise of 361.3%, on average.
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