Nokia Corporation (NOK Quick QuoteNOK - Free Report) launched a cutting-edge in-wall Optical Network Terminal (ONT), marking a significant stride in enterprise optical LAN connectivity. This innovative product promises gigabit speeds, ensuring a robust, rapid, and secure broadband connection within diverse enterprise settings such as offices, hotels, hospitals, and schools. The Nokia ONT joins the company's extensive Optical LAN portfolio, aligning with corporate initiatives aimed at addressing environmental, social and governance objectives.

In a landscape characterized by escalating demand for gigabit services, IoT integration and data-intensive applications, the necessity for a local area network (LAN) capable of meeting evolving requirements has become paramount. Leveraging fiber optic cables, Optical LAN emerges as a forward-looking, high-capacity alternative to traditional copper-based LAN setups, offering a fraction of the complexity, space, energy consumption and costs.

Nokia's latest ONT empowers enterprises to extend the reach of their Optical LAN infrastructure, facilitating the delivery of enhanced data capacity for employees engaging in video, voice and data-intensive tasks across the network. Moreover, the ONT accommodates additional endpoint devices like access points or cameras, enhancing functionality while optimizing space utilization and security. Scheduled for release in the second quarter of 2024, the new Nokia ONT promises to redefine enterprise connectivity standards.

The Optical LAN technology will significantly reduce the total cost of ownership by up to 50%, thereby delivering substantial operational and sustainable advantages, including reductions in energy consumption and carbon-dioxide emissions. This underscores the environmental sustainability and adaptability of Optical LAN, positioning it as an indispensable solution for enterprises seeking future-proof LAN infrastructure.

Nokia's pioneering in-wall ONT signals a paradigm shift in enterprise connectivity, offering unparalleled speed, reliability and scalability. As enterprises worldwide embrace Optical LAN solutions, Nokia stands poised to consolidate its position as a leader in next-generation networking technologies, poised for sustained growth and innovation.

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 18.3% in the past year against the industry’s growth of 23.7%.

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Zacks Rank & Other Key Picks

Nokia currently carries a Zacks Rank #2 (Buy).

Arista Networks, Inc. (ANET Quick QuoteANET - Free Report) , carrying a Zacks Rank #2 at present, 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. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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 Quick QuoteIDCC - 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 46.7% 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 to which it offers licensing technologies.

AudioCodes Ltd. (AUDC Quick QuoteAUDC - Free Report) currently carries a Zacks Rank #2. It has a long-term earnings growth expectation of 24.8% and delivered an earnings surprise of 20.1%, on average, in the trailing four quarters.

Headquartered in Lod, Israel, AudioCodes offers advanced communications software, products and productivity solutions for the digital workplace. It provides a broad range of innovative products, solutions and services that are used by large multi-national enterprises and leading tier-1 operators around the world.