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Nokia (NOK) Boosts NCTC Network Expansion With Fiber Solutions

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Nokia Corporation (NOK - Free Report) has joined forces with National Cable Television Cooperative (“NCTC”) to boost the latter’s 700 plus-member base of cable and broadband operators with its industry-leading, customized fiber solutions that can be upgraded up to 25Gbps. As part of the collaboration, NCTC members will also have first-hand access to the Finnish entity’s leading service programs. This, in turn, will enable member companies to streamline and monetize their networks with utmost efficacy.

Impressively, Nokia is touted as the sole NCTC partner that provides a 25G symmetrical PON solution. The agreement highlights NCTC’s endeavors in setting up a modernized network infrastructure. It also augments Nokia’s exposure to NCTC’s membership as several telcos and cable operators deploy upgraded access platform to support enhanced network capacities at affordable service rates to stay competitive amid the challenging market scenario.

With industry experience of 37 years, NCTC functions as a programming and hardware purchasing corporation for its member companies that primarily consists of small and mid-sized independent cable and broadband operators. The Kansas-based non-profit organization creates tailor-made programs that minimize operational overheads, unveils new-age technologies and optimizes bandwidth with new revenue generating paths for maximum profitability.

With several winning bids in the Phase I Rural Digital Opportunity Fund auction, member companies have been augmenting their fixed broadband service footprint in the underserved areas as well. NCTC also offers assistance with strategic tools and resources that enable members to fortify presence in the evolving media landscape. Driven by such positive undertakings, its members are expected to effortlessly tackle network upgrade and expansion challenges, thanks to Nokia’s innovative fiber solutions.

Needless to say, fiber is hailed as one of the fastest growing fixed access technology and Nokia aces the same with long-term value, better investment and monetization strategies. Markedly, the alliance will enable NCTC members to migrate toward network automation with cloud-native Software-Defined Networking solutions. The transition will help in scaling networks with capacity ranging from 2.5Gbps to 10Gbps and beyond as required. In addition, Nokia will aid member companies to accelerate their broadband service deployments while supporting various use cases ranging from fiber to the home to 5G transport.

Markedly, the Finnish telco equipment vendor 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 to 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.

The company has a strong foothold in all 5G early adopter markets and aims to bolster its product roadmap and cost competitiveness through additional 5G investments. 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.

The stock has returned 18.7% compared with the industry’s growth of 54.7% in the past year.

Nokia currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader industry are Ubiquiti Inc. (UI - Free Report) , Cambium Networks Corporation (CMBM - Free Report) and Sierra Wireless, Inc. (SWIR - Free Report) . While Ubiquiti and Cambium sport a Zacks Rank #1 (Strong Buy), Sierra Wireless carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ubiquiti delivered a trailing four-quarter earnings surprise of 37.1%, on average.

Cambium delivered a trailing four-quarter earnings surprise of 128%, on average.

Sierra Wireless has a long-term earnings growth expectation of 12.5%.

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