Nokia Corporation ( NOK Quick Quote NOK - Free Report) recently inked a three-year deal for an undisclosed amount with Virgin Media O2 to accelerate the latter’s network modernization in the United Kingdom. The deal is an extension of a long-term business relationship between the two firms and aims to provide reliable and faster connectivity to the end users. With more than 47.7 million connections across broadband, mobile, TV and home phone, Virgin Media O2 is one of the largest mobile network operators in the United Kingdom. Its fixed network currently has 16.3 million homes serviceable alongside a mobile network that covers 99% of the nation’s population with 4G, and more than 2,100 towns and cities with 5G services. Per the deal, the telecommunications equipment manufacturer will provide 5G RAN (Radio Access Network) solutions from its leading AirScale portfolio for improved network 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, thereby reducing network complexity. Nokia will offer 5G massive MIMO antenna solutions, hybrid antennas, modular units, macro remote radio heads and small cell solutions to support different spectrum bands. The technology also mitigates the adverse environmental impact as it will consume 30% less energy than available variants and cut 40% in weight and volume to expedite the network deployment. Virgin Media O2 also aims to accelerate its 5G coverage rollout by leveraging Nokia’s single RAN solution, which enables one base station to run 5G, 4G, 3G and 2G technologies simultaneously. In addition, the company will offer NetAct network management solution that enables carriers to effectively manage network issues for seamless operations and optimization of resources. 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. 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. The company 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. Nokia remains focused on building a robust, scalable software business and expanding it to structurally attractive enterprise adjacencies. It has inked more than 286 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 6.8% in the past year against the industry’s growth of 1.3%. Image Source: Zacks Investment Research
Nokia currently carries a Zacks Rank #3 (Hold).
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