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Nokia (NOK) Expands Optical Relationship With DELTA Fiber

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Nokia Corp. (NOK - Free Report) has been selected by DELTA Fiber to provide a next-generation optical transport network that will manage the latter’s increased traffic and expansion of its Fiber to the Home (FTTH) rollout.

Owned by the Sweden-based investment company EQT, DELTA Fiber is one of the fastest growing fiber companies in the Netherlands. With nearly a doubling of traffic each year, it has in place an aggressive goal to roll out FTTH over the next decade.

Under the DELTA and Caiway brands, the firm provides Internet at gigabit speeds, interactive TV and fixed and mobile telephony to consumers and enterprises. It aims to grow to 2 million connections by 2025.

Based on 400G wavelengths, the high capacity network will offer DELTA Fiber’s customers superior service quality and speeds. The 400Gbit/s speeds and higher wavelengths enable a simplified network that enhances operational efficiency.

This deal is part of a broader agreement to support DELTA Fiber’s expansion plans, which includes Nokia supplying XGS-PON access network and customer premise equipment.

DELTA Fiber will leverage the Nokia 1830 Photonic Service Switch platforms, driven by Nokia’s Photonic Service Engine technology, to quickly deploy services and reduce network total cost of ownership.

It will support DELTA Fiber’s deployment of a new Dense Wavelength Division Multiplexing network using Nokia’s Reconfigurable Optical Add-Drop Multiplexers for optimized core and metro applications. The core network build is currently underway to support 19 sites and will be followed by the deployment of metro sites, covering almost 75 locations.

Nokia’s optical transport network will play a crucial role in enabling DELTA Fiber to grow with the needs of its customers. The new network will address the requirements of exponential traffic growth without compromising on reliability.

Nokia is well positioned to benefit from the increasing demand for next-generation connectivity. The Finland-based company has made meaningful progress in its three-phased journey of value creation.

Nokia’s focus on capital allocation and technology leadership in 2021 is expected to help it grow profitably in 2022 and beyond.

Nokia’s shares have gained 48.8% in the past six months compared with the industry’s growth of 3.1%.

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The stock currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the industry are Clearfield, Inc. (CLFD - Free Report) , Juniper Networks, Inc. (JNPR - Free Report) and Qualcomm, Inc. (QCOM - Free Report) . While Clearfield sports a Zacks Rank #1 (Strong Buy), Juniper and Qualcomm carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Clearfield delivered a trailing four-quarter earnings surprise of 49%, on average.

Juniper pulled off a trailing four-quarter earnings surprise of 7.5%, on average.

Qualcomm delivered a trailing four-quarter earnings surprise of 13.5%, on average.

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