Nokia Corporation’s (NOK - Free Report) network unit – Nokia Solutions and Networks (NSN) – has reportedly cut a deal with Hutchison Whampoa's Irish mobile network subsidiary – Three to upgrade the latter’s 2G and 3G networks. NSN will also chalk out integration works with Three’s newly acquired O2 Ireland.
In this regard, Nokia will start the deployment of fresh technology and hardware from next month. The project is expected to complete by 2017. Per the deal, NSN will deliver its Single RAN platform. For the purpose of monitoring, enhancing and managing Three’s network, Nokia will also deploy its cloud-ready OSS system and NetAct.
Over the recent past, Nokia has inked several pivotal deals. In mid-August, the company sealed a deal with Vodafone Group Public Limited Company’s (VOD - Free Report) New Zealand operations to install a 700 MHz-based LTE network. Nokia has reportedly won 12 deals in the first half of 2014 compared to 9 deals in the first half of 2013.
In the second quarter of 2014, Nokia’s NSN segment generated $3.5 billion in revenues, down 7.7% year over year. However, we believe regular contract wins like these should turnaround this segment’s revenues.
Earlier this week, Nokia completed the acquisition of SAC Wireless – a U.S. based network installation services provider. Nokia believes post-acquisition, problems plaguing the company like site procurement, and applying for certifications and sub-contracting, among others, will be duly resolved.
Nokia currently bears a Zacks Rank #3 (Hold).
Other Stocks to Consider
Better-ranked stocks worth considering in this sector include DragonWave Inc. and Ericsson (ERIC - Free Report) . Both the stocks hold a Zacks Rank #2 (Buy).