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Nokia (NOK) Solution Boosts Mobile Service Deployment in Belgium

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Nokia Corporation (NOK - Free Report) recently announced that Citymesh, a Belgium-based operator, has selected Nokia Core Software as a Service (SaaS) to launch nationwide B2B mobile services. Citymesh aims to solidify its position as a leading national B2B operator by enhancing its network operations, providing comprehensive end-to-end solutions and delivering premium experience to its clientele.

Nokia Core SaaS brings several benefits, including streamlined cost control, quicker time to market and improved support for new service development. Transferring more core management to Nokia reduces the operational workload for businesses and reduces the burden of managing physical data centers and infrastructure, allowing companies to refocus on critical business endeavors.

Leveraging Nokia’s solution enables Citymesh to deliver robust and flexible connectivity services through a subscription-based model. This approach not only eliminates the need for initial capital investments but also reduces the cost associated with software maintenance of on-premise infrastructure. The solution will foster innovation and accelerate time to value in the monetization of network assets.

Furthermore, the Core SaaS technology will support Citymesh's efforts in network programmability, focusing on various software development tools and the use of APIs (Application Programming Interfaces). Citymesh intends to broaden its service applications across a diverse range of scenarios, including professional sporting events, BVLOS (Beyond Visual Line of Sight) drones, and first responder operations.  The recent agreement accentuates the growing demand for Nokia’s SaaS solution. The company’s SaaS business grew significantly in 2023 and concluded the year with around 40 enterprise customers and communication service providers.

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 22.8% in the past year against the industry’s growth of 11.5%.

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

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