Back to top

Image: Bigstock

Nokia (NOK) Tests Sustainable Networking Solutions in Japan

Read MoreHide Full Article

Nokia Corporation (NOK - Free Report) recently conducted a trial with Japan-based telecommunications operator KDDI to test the efficacy of sustainable networking solutions in a concerted effort to combat adverse climatic changes. The tests are likely to sow the seeds for large-scale use of environment-friendly networking solutions by carriers in order to reduce their operating costs and contribute to the CSR (Corporate Social Responsibility) initiatives.   

Notably, traditional air-coolants utilized in the base stations are quite noisy and require regular maintenance for filter change and re-filling of gases. Nokia’s Liquid Cooling solution aims to eliminate this drawback by capturing heat where it is produced and converting it into liquid. This maintenance-free and virtually silent cooling solution reduces carbon dioxide emission by more than 70% compared to similar such available devices in the market, making it an ideal choice for large residential areas with several occupants.

The trial further aims to test the functionality of a heat reuse option in baseband cooling system that could lead to a potential reduction of 80% in harmful carbon dioxide emissions. Markedly, the Nokia AVA for Energy Efficiency solution, which is also being tested by KDDI, leverages AI to lower energy bills by up to 20% by dynamically adapting energy consumption to traffic levels. With the successful execution of such trials, the company intends to act responsibly for developing environment-friendly solutions in its quest for cutting harmful emissions by 50% between 2019 and 2030, as part of its updated science-based climate change targets.

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 with each other. 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 146 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 17.8% in the past year compared with the industry’s growth of 42.1%.
 

Zacks Investment ResearchImage Source: Zacks Investment Research

Nokia currently has a Zacks Rank #2 (Buy). Some other top-ranked stocks in the industry are Aviat Networks, Inc. (AVNW - Free Report) , United States Cellular Corporation (USM - Free Report) and Clearfield, Inc. (CLFD - Free Report) , carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Aviat delivered an earnings surprise of 57.3%, on average, in the trailing four quarters.

U.S. Cellular delivered a trailing four-quarter earnings surprise of 123.9%, on average.

Clearfield delivered an earnings surprise of 79.8%, on average, in the trailing four quarters.

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is “Will you get into the right stocks early when their growth potential is greatest?”

Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

Download FREE: How to Profit from Trillions on Spending for Infrastructure >>

Published in