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Nokia (NOK) Aims to Modernize MTN's Network in South Africa

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Nokia Corp. (NOK - Free Report) has been selected by MTN, a leading telecommunications company in Africa and the Middle East, for its voice core evolution and network modernization in South Africa.

MTN South Africa is expanding its Voice over Broadband, Voice over Wi-Fi, and Voice over LTE services over its high-speed LTE network. The operator is leveraging Nokia’s 5G cloud-native infrastructure and IP Multimedia Subsystem (IMS) to deliver high-quality voice and multimedia service for customers.

The deal has reinforced Nokia’s long-standing partnership with MTN South Africa. Nokia’s cutting-edge technology has enabled MTN South Africa to enhance the customer experience.

Nokia’s shares have gained 35.6% in the past six months compared with the industry’s growth of 7.4%.

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Nokia IMS and VoLTE lay the foundation for the introduction of 5G service. Through this partnership, MTN will also be able to modernize its networks in other African countries.

Communications service providers are transforming themselves into digital service providers to offer new-age user experiences. By deploying a cloud-based network, MTN will be able to improve its overall performance and reduce costs.

Nokia aims to accelerate its product roadmaps and cost competitiveness through additional 5G investments. It has been developing its 5G portfolio, strengthening AirScale, and advancing the capabilities of its ReefShark chipset.

The company currently has 181 commercial 5G deals with communications service providers and 69 live 5G operator networks.

Nokia is well-positioned to benefit from the growing demand for next-generation connectivity. Its focus on capital allocation and technology leadership in 2021 is expected to help it grow profitably in 2022 and beyond.

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.