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Nokia (NOK) to Boost Rural Broadband With PON Deployment

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Nokia Corporation (NOK - Free Report) recently revealed that Mediacom Communications, one of the prominent cable operators in the United States, has selected Nokia’s XGS-PON (Passive Optical Network) solutions to offer multi-gigabit broadband service in remote rural areas in the country. Mediacom offers broadband services to 3.3 million homes and enterprises across the nation. The company, in collaboration with Nokia, is aiming to reduce the digital divide and connect more people in rural America with high-quality broadband services.

Globally, Nokia is the leading provider of XGS-PON systems and equipment. About seven out of every ten fiber-connected homes in the United States reportedly rely on its equipment. This signifies the solid customer foundation Nokia boasts in the country and its partnership with Mediacom will further solidify its presence in the region.

Cable operators are increasingly preferring XGS PON and 25G PON technology for the installation of FTTH (Fiber to the Home) solutions. Nokia’s PON solutions are cost-effective, energy efficient and easy to deploy with unmatched scalability for higher return on investment.

The Biden administration is committed to ensuring high-speed connectivity for all its citizens. Mediacom’s expansion strategy will be partially funded by state and federal grant projects. Leveraging Nokia's indigenous technology, Mediacom will be able to gain a substantial leap in bandwidth capacity. It will also be able to fulfill current service requirements that can accommodate future service growth and expansion as well.

Nokia will also provide chassis-based Optical Line Terminals, which will enable Mediacom to efficiently address the evolving and diverse traffic demands across its network spanning 22 states. This not only enhances performance and resilience but also ensures more efficient utilization of network resources. The successful completion of this initiative will boost Nokia’s credibility in the wireless equipment market and strengthen Mediacom’s position as the leading cable operator in the country.

Nokia 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, it 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 Internet of Things.

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

The stock has declined 19.4% in the past year compared with the industry’s fall of 12.1%.

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

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