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Nokia (NOK), Transworld Team Up for High-Capacity Optical Network

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Nokia Corporation (NOK - Free Report) recently announced that Transworld Associates, a prominent submarine fiber optic network provider in Pakistan, opted to deploy Nokia’s industry-leading optical transport solution suite. The solutions will be instrumental in constructing a new optical network system linking Pakistan, the United Arab Emirates and Oman. With this recent submarine capacity expansion initiative, TWA is aiming to set a new benchmark for connectivity in the region.

Nokia’s solution suite includes 1830 Photonic Service Switch platforms. The solution effectively manages large volumes of data and optimizes network performance to meet TWA's growing bandwidth requirements. Along with boasting high capacity, it reduces power consumption per bit, contributing to environmental sustainability. In addition, Nokia’s CDC-F architecture will ensure flexibility and resilience in the network infrastructure, enabling TWA to address evolving client demand trends.

With the growing proliferation of digital activities in the region, data centers are witnessing a substantial surge in data traffic. The new optical network system will deliver a capacity of 9.2Tb/s, effectively matching the fast connectivity demand in the area.

Moreover, TWA also introduces the region's first 400Gbps per lambda transmission across a subsea system built on Nokia's PSE-Vs technology. These advancements will empower enterprises, service providers and webscalers to harness the potential of high-speed networks, streamline operations and open up new commercial opportunities.

Nokia's optical networks portfolio is experiencing significant headwinds in the Asia-Pacific. However, the recent venture with TWA will likely bolster Nokia’s presence and improve prospects in the region. In the Optical Networks segment, Nokia’s actively expanding capabilities of its PSE-6s solutions. In a recent live network trial, the solution set a new record of 800 Gbps transmission on a single wavelength over 6,600 km. The company's strong emphasis on expanding its portfolio and fostering innovation bodes well for its long-term growth trajectory.

The stock has lost 24% in the past year against the industry’s growth of 16.2%.

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Zacks Rank & Other Key Picks

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

NVIDIA Corporation (NVDA - Free Report) , currently sporting a Zacks Rank #1 (Strong Buy), delivered a trailing four-quarter average earnings surprise of 20.18%. In the last reported quarter, it delivered an earnings surprise of 13.41%. You can see the complete list of today’s Zacks #1 Rank stocks here.

NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company’s focus evolved from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms.

Pinterest (PINS - Free Report) , carrying a Zacks Rank #2 at present, delivered a trailing four-quarter average earnings surprise of 37.42%. In the last reported quarter, it delivered an earnings surprise of 3.92%.

Pinterest is increasingly establishing a unique value proposition to advertisers that could provide a competitive advantage in the long haul. Through various innovations, it continues to dramatically improve the advertising platform, which appears to be one of the best ad platforms for consumer discretionary brands looking for ways to reach customers and stretch smaller ad budgets.

Qualcomm Incorporated (QCOM - Free Report) , carrying a Zacks Rank #2 at present, delivered a trailing four-quarter average earnings surprise of 5.90%. In the last reported quarter, it delivered an earnings surprise of 15.55%.

With the accelerated rollout of 5G technology, it is benefiting from investments toward building a licensing program in mobile. The company is well-positioned to meet its long-term revenue targets driven by solid 5G traction, greater visibility and a diversified revenue stream. The company is increasingly focusing on the seamless transition from a wireless communications firm for the mobile industry to a connected processor company for the intelligent edge. This augurs well for the long-term growth proposition of the company.

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