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Nokia (NOK), Intel Team Up to Drive Energy Efficiency in 5G

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Nokia Corporation (NOK - Free Report) joined forces with Intel Corporation (INTC - Free Report) to optimize energy consumption in 5G networks. The growing power consumption in 5G networks is a matter of serious concern for communication service providers (CSP). 5G networks are required to accommodate a massive number of devices with significantly faster data rates compared to previous 4G networks. To fulfill these requirements, 5G needs much denser network deployment.

Additionally, the use of various advanced technologies such as Massive MIMO (Multiple Input Multiple Output) also leads to greater power consumption. This surge in energy usage not only raises environmental concerns but also leads to higher operating costs for service providers. Fluctuations in energy prices also affect CSPs’ network operations.

Through this collaboration with Intel, Nokia aims to address these concerns. Leveraging Intel's technology, Nokia showcased 40% runtime power savings during the demonstration. Intel Infrastructure Power Manager software and 4th Gen Intel Xeon Scalable Processors were utilized in conjunction with Nokia’s cloud-based 5G core during the procedure.

This integration of Nokia's Core technology with Intel's power modulation features ensures that the power usage of the chips is adjusted to the amount of traffic flowing through the network. Data traffic fluctuates significantly over a 24-hour period. Nokia’s innovation will ensure that during periods of low traffic, energy usage is scaled down, while during high data flow, more energy is allotted to match the increased demand.

Nokia is aiming to introduce this energy-saving feature in the second half of 2024 with Nokia’s Cloud Packet Core. These advanced capabilities will lower electricity usage and related expenses and enable CSPs to optimize their resource utilization. The venture underscores Nokia’s commitment to deliver a 50% reduction in greenhouse gas emissions by 2030.

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.

NOK 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 declined 24.1% in the past year against the industry’s growth of 7.5%.

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

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