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Nokia (NOK) to Help TELUS in Expanding 5G Service Offerings

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Nokia Corporation (NOK - Free Report) recently secured a contract for an undisclosed amount to deploy critical 5G infrastructure solutions for TELUS Corporation (TU - Free Report) . In addition to improved network performance, the solutions are likely to expand the 5G service offerings of the Canadian operator and strengthen its leading market position.

In particular, Nokia will deploy subscriber data management, policy controller, NetAct network management, LTE indoor picocells and IP edge routers for TELUS. Subscriber data management is one of the key functions in telecommunication networks that enables carriers to effectively manage sensitive subscriber data in a centralized format in a secure User Data Repository. This central register with a single point of provisioning will likely help TELUS to accelerate time to market while introducing new technologies or services. The policy controller is a scalable network function that facilitates interoperability between 4G and 5G networks and can be deployed rapidly into multi-vendor networks.

With the NetAct network management system, Nokia will provide TELUS a comprehensive view of multi-domain, multi-technology networks, including 5G, 4G/LTE, 3G and 2G. This, in turn, will help in monitoring and surveillance, user and system administration, software management by leveraging Big Data and combining it with machine learning techniques for various functionalities. The company will also help the Canadian operator improve indoor connectivity by installing picocells, which are small cellular base stations that extend coverage when outdoor signals are relatively poor. Its edge routers will further provide the scale, performance and extensive service capabilities that TELUS would need to keep pace with the evolving 5G network demands.

The state-of-the-art telecommunications equipment from Nokia will enable TELUS to cost-effectively manage its network with minimal human intervention for ultra-low network latency, reliability and security features. It is also likely to enable the carrier to establish a cloud-native network architecture for faster and efficient delivery of services across key verticals, as it aims to leapfrog in the 5G race and drive digital development. This, in turn, is likely to spur economic growth as the country navigates through the coronavirus-induced turmoil.

The contract strengthens the business relationship of both firms. Nokia is well positioned for the ongoing technology cycle, given the strength of its end-to-end portfolio. The company is driving the transition of global enterprises into smart virtual networks by creating a single network for all services, converging mobile and fixed broadband, IP routing and optical networks with software and services to manage them. Leveraging state-of-the-art technology, Nokia is transforming the way people and things communicate and connect. These include seamless transition to 5G technology, ultra-broadband access, IP and Software Defined Networking, cloud applications, and IoT.

Nokia facilitates its customers to move away from an economy-of-scale network operating model to demand-driven operations by offering easy programmability and flexible automation needed to support dynamic operations, reduce complexity and improve efficiency. The company seeks to expand its business into targeted, high-growth and high-margin vertical markets to address growth opportunities beyond its traditional primary markets. Nokia remains focused on building a robust scalable software business and expanding it to structurally attractive enterprise adjacencies. It has reached more than 100 commercial 5G contracts across the globe. The company’s end-to-end portfolio includes products and services for every part of a network, which are helping operators to enable key 5G capabilities, such as network slicing, distributed cloud and industrial IoT. Accelerated strategy execution, sharpened customer focus and reduced long-term costs are expected to position the company as a global leader in the delivery of end-to-end 5G solutions.

Shares of the company have gained 14.4% in the past year compared with the industry’s growth of 34.4%.



We remain impressed with the inherent long-term growth potential of this Zacks Rank #4 (Sell) stock.

Some better-ranked stocks in the industry are Aviat Networks, Inc. (AVNW - Free Report) and Ubiquiti Inc. (UI - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Aviat delivered a positive earnings surprise of 11.8%, on average, in the trailing four quarters.

Ubiquiti has a long-term earnings growth expectation of 18.4%. It delivered a positive earnings surprise of 27.9%, on average, in the trailing four quarters.

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