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Nokia (NOK) Teams Up With dtac for 5G Services in Thailand

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Nokia Corporation (NOK - Free Report) has strengthened its long-standing partnership with dtac, a leading mobile operator in Thailand. dtac is part of the Telenor Group.

The Finland-based telecom equipment provider has been selected by the operator as its first 5G radio access network partner. The three-year deal covers the North and North Eastern regions of the country.

Nokia has a presence in Thailand for more than 30 years thanks to the deployment of 2G, 3G and 4G networks. The company will now provide 5G connectivity that is likely to be instrumental in the country’s digital transformation initiatives. The deployment is expected to be completed in 2022.

Nokia will play a significant role in ensuring that dtac’s network is fully 5G-ready. The deal will highlight an accelerated large-scale deployment of 5G on low-band spectrum and high-capacity millimeter wave technology. It also includes enhancements of the existing networks utilizing 2300MHz, 2100MHz and 1800MHz spectrum.

In this project, Nokia will provide its AirScale Radio Access solutions for 4G and 5G networks that are likely to improve the overall network performance. AirScale Radio Access is a commercial 5G solution that enables operators to capitalize early on 5G. The deal includes digital deployment for faster time to market and optimization services.

Furthermore, dtac will deploy Nokia Software’s NetAct Cloud network management system. The solution delivers best-in-class tools for troubleshooting, software and configuration management. Dtac is focused on bringing improved coverage and higher data capacity to its customers. Nokia will support the operator by enabling a faster rollout of 5G services as demand continues to grow.

Nokia aims to accelerate its product roadmaps and cost competitiveness through additional 5G investments. The company has been developing its 5G portfolio, strengthening AirScale and advancing the capabilities of its ReefShark chipset. It currently has 138 commercial 5G deals with communications service providers.

The company has a presence in all 5G early adopter markets. Nokia had announced some important changes to its operating model. This was done to better align with the needs of its customers and create shareholder value. However, the company’s finances in 2021 are expected to face challenges.

Nokia’s shares have gained 5.4% in the past year compared with 35% growth of the industry.

The stock currently has a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader industry are Plantronics (PLT - Free Report) , United States Cellular (USM - Free Report) and NIC (EGOV - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Plantronics delivered a trailing four-quarter earnings surprise of 568.2%, on average.

U.S. Cellular delivered a trailing four-quarter earnings surprise of 231.1%, on average.

NIC delivered a trailing four-quarter earnings surprise of 27.5%, on average. The company’s earnings beat the Zacks Consensus Estimate in two of the last four quarters.

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