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Nokia (NOK) to Power NBN's Network Expansion in Australia

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Nokia Corporation (NOK - Free Report) recently inked a deal with NBN Co Limited to deploy a next-generation broadband access platform across Australia. The deal will enable the publicly owned entity to offer superior broadband connectivity to its customers in the Southern Hemisphere and extend its footprint to hitherto untapped areas.

Since its inception in 2009, NBN has evolved as the digital backbone of Australia, operating a wholesale broadband access network across the continent. Per the deal, Nokia will provide Altiplano Access Controller and Lightspan MF-14, the world’s first 6th-generation broadband platform, to facilitate the convergence of all services over a single fiber network infrastructure.

The state-of-the-art broadband platform offers low latency with advanced hardware and disaggregated software design. Leveraging an industry-leading software-defined networking platform, the Altiplano Access Controller will enable network automation and provide key insights to improve efficiency and customer satisfaction.

The Australian government is further investing $2.4 billion to improve the fiber infrastructure across the country. This will help NBN to upgrade an additional 1.5 million homes from the Fiber to the Node (FTTN) to Fiber to the Premises (FTTP) technology for faster broadband speeds, better reliability and energy efficiency.

By unlocking network efficiencies with common operability, software delivery and increased hardware sharing, Nokia has reduced the total cost of ownership for mobile operators. The company is well-positioned for the ongoing technology cycle, given the strength of its end-to-end portfolio. Its installed base of high-capacity AirScale products is also growing fast.

5G RAN solutions from its leading AirScale portfolio offer extensive indoor and outdoor coverage. The AirScale Radio Access products deliver low-latency, high-capacity mobile connectivity with a low cost of ownership. These can be easily upgraded through a software update, reducing network complexity.

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 the 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 a seamless transition to 5G technology, ultra-broadband access, IP and Software Defined Networking, cloud applications and the Internet of Things.

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 remains focused on building a robust, scalable software business and expanding it to structurally attractive enterprise adjacencies. It has inked more than 252 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.

The stock has lost 11.3% in the past year compared with the industry’s decline of 20.8%.

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Nevertheless, we remain impressed with the inherent growth potential of this Zacks Rank #4 (Sell) stock.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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