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Nokia (NOK) Boosts Armenia's Network With Ucom Partnership

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Nokia Corporation (NOK - Free Report) has secured a pivotal collaboration with Ucom aimed at revolutionizing network connectivity in Armenia. The agreement entails the upgrade of Ucom's nationwide radio access network (RAN), along with enhancements to its core and IP network infrastructure, all orchestrated to pave the way for the future deployment of 5G services in the country.

Ucom is reportedly the fastest fixed and mobile services provider in Armenia. By leveraging Nokia's cutting-edge 5G AirScale portfolio, fueled by energy-efficient ReefShark System-on-Chip technology, Ucom anticipates a significant boost in performance and capacity. Moreover, Nokia's intelligent MantaRay Networks Management system promises consolidated network monitoring and management capabilities enriched with AI functionalities, ensuring enhanced efficiency and reliability.

Per the deal, Nokia will deploy a suite of solutions, including Cloud Packet Core portfolio, Cloud Operations Manager, Shared Data Layer and Subscriber Data Management, among others. The incorporation of Nokia IP routers across various network segments further solidifies the comprehensive nature of the upgrade.

The partnership has the potential to catalyze a new era of connectivity in Armenia and unlock new applications reliant on the speed and low latency of 5G technology, positioning Ucom as a leader in telecommunications advancements. It also positions Nokia to capitalize on the growing demand for advanced telecommunications infrastructure in the region.

Nokia 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, which enables customers to upgrade to 5G quickly, is growing fast. It 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.

The company aims to create new business and licensing opportunities in the consumer ecosystem. It facilitates customers to move away from an economy-of-scale network operating model to demand-driven operations by offering easy programmability and flexible automation required 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 lost 23.3% in the past year against the industry’s growth of 5%.

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Zacks Rank & Key Picks

Nokia carries a Zacks Rank #3 (Hold) currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Arista Networks, Inc. (ANET - Free Report) , carrying a Zacks Rank #2 (Buy), is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 19.8% and delivered an earnings surprise of 12%, on average, in the trailing four quarters.

It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. Arista is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.

Headquartered in Wilmington, DE, InterDigital, Inc. (IDCC - Free Report) is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks.

This Zacks Rank #2 stock has a long-term earnings growth expectation of 17.4% and has surged 75.3% in the past year. A well-established global footprint, diversified product portfolio and ability to penetrate different markets are key growth drivers for InterDigital. The addition of technologies related to sensors, user interface and video to its already strong portfolio of wireless technology solutions is likely to drive considerable value, given the massive size of the market it offers licensing technologies to.

Ubiquiti Inc. (UI - Free Report) , carrying a Zacks Rank #2 at present, is a key pick in the broader industry. Headquartered in New York, it offers a comprehensive portfolio of networking products and solutions for service providers and enterprises at disruptive prices.

It boasts a proprietary network communication platform that is well-equipped to meet end-market customer needs. In addition, it is committed to reducing operational costs by using a self-sustaining mechanism for rapid product support and dissemination of information by leveraging the strength of the Ubiquiti Community.

Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.

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