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Nokia's Solutions to Boost 5G Network in Vietnam: Will the Stock Gain?

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Nokia Corporation (NOK - Free Report) recently entered into an agreement with Vietnam Posts and Telecommunications Group (“VNPT”) for an undisclosed amount to deploy 5G technology in Vietnam. This collaborative effort aims to strengthen VNPT’s mobile core network to meet the evolving demands of its customers through access to Nokia’s cutting-edge connectivity and technology solutions.

Digging Deep Into the NOK-VNPT Collaboration

As part of the agreement, Nokia will deploy equipment from its state-of-the-art industry-leading 5G AirScale portfolio. This product suite, powered by the energy-efficient ReefShark System-on-Chip technology, will likely ensure an efficient and scalable network coverage with high capacity to address various advanced applications. 

Additionally, VNPT will benefit from Nokia's MantaRay network management solution, which is renowned for its network optimization and automation capabilities. This solution features self-configuring modules that enhance network performance and efficiency, tailored to meet specific operational challenges and growing complexity. AI-based automation will also facilitate better monitoring and management of the network with fewer people to ensure seamless equipment installation and superior performance.

Nokia  manufactures its 5G products locally in Vietnam. While this reinforces its commitment to the region on one hand, it also facilitates the seamless collaboration to help accelerate the development of the digital economy in the South East Asian nation.

Will this Collaboration Drive NOK Shares ?

With the emergence of the smartphone market and subsequent usage of mobile broadband, user demand for coverage speed and quality has increased in recent times. Further, to maintain superior performance as traffic increases, there is also a continuous need for network tuning and optimization. The company’s expertise in mission-critical networks is well-established, with deployments across more than 2,600 leading enterprise customers in the transportation, energy, manufacturing, webscale and public sector segments worldwide.

This collaboration with VNPT is likely to propel the stock with incremental revenue generation and inducement of similar deals from other carriers in the future. The deal is also expected to strengthen Nokia’s position as a leading telecommunications equipment provider in the region.

NOK’s Stock Price Performance

Shares of Nokia have gained 50.3% over the past year compared with the industry’s growth of 66%.

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NOK’s Zacks Rank and Key Picks

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

Some better-ranked stocks in the broader industry have been discussed below.

Ubiquiti Inc. (UI - Free Report) sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Its excellent global business model, which is flexible and adaptable to evolving changes in markets, helps it to beat challenges and maximize growth. The company’s effective management of its strong global network of more than 100 distributors and master resellers improved UI’s visibility for future demand and inventory management techniques. In the last reported quarter, Ubiquiti delivered an earnings surprise of 4.19%. 

Workday Inc. (WDAY - Free Report) sports a Zacks Rank #1 at present. In the last reported quarter, it delivered an earnings surprise of 7.36%. WDAY is a leading provider of enterprise-level software solutions for financial management and human resource domains. 

Ooma, Inc. (OOMA - Free Report) currently carries a Zacks Rank #2 (Buy). In the last reported quarter, it delivered an earnings surprise of 7.14%. 

Ooma provides communications solutions and other connected services to small businesses and home and mobile users. The company's products include Ooma Office for small businesses, Business Promoter, Ooma Telo for home, Ooma end-point devices, Ooma Premier Service for Telo, Talkatone Application, as well as caller identification, call-waiting and voice mail services. Ooma is based in Palo Alto, United States.


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