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Nokia (NOK) Solution to Aid Digitalization in Switzerland

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Nokia Corporation (NOK - Free Report) recently announced that Swisscom has completed the deployment of its optical networking solution to upgrade and establish a resilient, high-capacity network infrastructure nationwide. Swisscom, the largest telecom provider in Switzerland, initiated the project NEWTON (Next Evolution Wavelength Transport Optical Network) to accelerate digital transformation, with Nokia serving as the primary supplier in the venture.

Under the project, the Swiss carrier collaborated with Nokia to enhance communication infrastructure by establishing 22 vital backbone sites and 560 metro sites. The successful installation of Nokia’s optical networking hardware and software products has brought massive scalability in the range of services, spanning from 1G to 400G. Along with this massive capacity, the solution is optimizing traffic management with faster service delivery, automating routine tasks. Its impressive low power consumption feature also ensures environmental sustainability of the project.

Following the successful completion of the NEWTON project, Nokia has commenced service migration to a high-capacity optical transport network. This will provide Swisscom with a service-oriented, high-performance network capability. Nokia is also offering its wavesuite applications, enabling advanced analytics and real-time network monitoring. This tool will empower Swisscom to adapt to fast-changing market demands, ensure network resource utilization and maximize revenue potential.

The increasing reliance on various data-intensive applications, such as cloud computing, video streaming, remote work and learning software applications, has resulted in high demand for robust connectivity. Leveraging Nokia’s industry-leading expertise in optical networks will empower Swisscom to support enterprises and residences with reliable fixed and wireless services across the nation.

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.

The company aims to create new business and licensing opportunities in the consumer ecosystem. To strengthen its leading position in the market, 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. It seeks to expand its business into targeted, high-growth and high-margin vertical markets to address growth opportunities beyond its traditional primary markets.

The stock has declined 25.2% in the past year compared with the industry’s fall of 3.9%.

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Nokia currently has a Zacks Rank #4 (Sell).

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