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Nokia (NOK) Partners AT&T to Enhance RAN Optimization

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Nokia Corporation (NOK - Free Report) recently announced that it has collaborated with AT&T (T - Free Report) and accomplished a successful trial of an Open RAN compliant near real-time RAN Intelligent Controller (RIC) with a native E2 interface. With this collaboration, the company is looking to drive innovation further to streamline the process and ensure a premium experience for end users.

A radio access network is crucial to the wireless communication environment, which connects individual devices to other networks via a radio link. In today’s world of ever-growing mobile connectivity, operators are looking for affordable solutions with advanced radio network optimization capabilities. The recently concluded testing demonstrated that Nokia's near real-time RIC platform, backed by AI and ML algorithms, is capable of matching these demands.

AT&T provided network support during the trial to facilitate the testing and validating the near real-time RIC platform running on Nokia AirScale base stations. The newly-introduced RIC, when implemented with xApps, improves performance and allows greater flexibility as it enables RAN optimization according to the requirement of operators. This collaboration also highlights the acceptance and credibility of AT&T’s network services in the industry.

The solution also features Anomaly Detection xApp, which enables instant identification of abrupt RAN behavior patterns, and Advanced Traffic Steering xApp, which enhances bandwidth connectivity. Nokia is one of the first major RAN vendors to demonstrate these capabilities.
The company enables its customers to move away from an economy-of-scale network operating model to demand-driven operations through easy programmability and flexible automation to support dynamic operations, reduce complexity and improve efficiency. Nokia seeks to expand its business into targeted, high-growth and high-margin vertical markets to address growth opportunities beyond its traditional primary markets.

It is well-positioned for the ongoing technology cycle, given the strength of its end-to-end portfolio. The company’s deal win rate is encouraging, with notable successes in the key 5G markets of the United States and China. Its installed base of high-capacity AirScale products, which enable customers to upgrade to 5G quickly, is growing fast.

It has made significant progress on its three-phased journey of value creation. The company’s strategy includes Reset, Accelerate and Scale. Its focus on capital allocation and technology leadership is expected to help it grow profitably. Nokia is on track to achieve sustainable, profitable growth and technology leadership. The company is witnessing healthy momentum in its focus areas of software and enterprise, which augurs well for the licensing business. It is poised to benefit from copper and fiber deployments of passive optical networking. The C-Band portfolio supports 5G standalone and non-standalone networks, cloud-based implementations and Open RAN products.

The stock has declined 14.9% in the past year compared with the industry’s fall of 18.8%.

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Nokia currently carries a Zacks Rank #3 (Hold).

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

Juniper Networks, Inc. (JNPR - Free Report) , carrying a Zacks Rank #2 (Buy), delivered an earnings surprise of 1.55%, on average, in the trailing four quarters. It is witnessing strong momentum across its core industry verticals and is confident of its long-term prospects. Investments in customer solutions and sales organizations have enabled the company to capitalize on the solid demand across end markets.

Juniper is a leading provider of networking solutions and communication devices. The company develops, designs and sells products that help build a network infrastructure for services and applications based on a single Internet protocol network worldwide. The company caters to the networking needs of enterprises, public sector organizations and service providers across the globe.

Arista Networks, Inc. (ANET - Free Report) , sporting a Zacks Rank #1, delivered an earnings surprise of 14.17%, on average, in the trailing four quarters. Earnings estimates for ANET for the current year stand at $5.79 per share. Arista provides cloud networking solutions for data centers and cloud computing environments. The company offers 10/25/40/50/100 Gigabit Ethernet switches and routers optimized for next-generation data center networks.

It continues to benefit from strong momentum and diversification across its top verticals and product lines. ANET has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. It is well-poised for growth in data-driven cloud networking business with proactive platforms and predictive operations. Arista has introduced network observability software, DANZ Monitoring Fabric (DMF), on its switching platforms for enterprise-wide traffic visibility and contextual insights.

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