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Nokia (NOK) to Offer LTE-R Service to Korea Rail Network

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Nokia Corporation (NOK - Free Report) recently inked a deal with Korea Rail Network Authority (“KRNA”) to provide LTE-R mobile broadband network to the latter. Notably, this is the first time that such a technology will be deployed.

KRNA maintains and develops railway infrastructure in South Koreaas well as several other countries. Its railway operations and employee services would, therefore, be highly benefited by the new broadband network technology. The LTE-R service will be initially introduced on a railway line between Wonju and Gangneung in South Korea as the country is gearing up to host a major international sporting event in 2018.

Details of New Technology

The LTE-R technology is a version of the popular 4G LTE technology. The new technology is currently being developed to cater to the various requirements of railway operators. KRNA’s communication network will utilize the LTE-R technology for operational and maintenance purposes. The company’s high speed commercial railway line can reach speeds of up to 250 kilometers per hour and the LTE-R technology should ensure a secure, trustworthy and high-speed connection among trains, stations and other facilities.

The company’s project will also serve as the base for the future applications of the LTE-R technology. Nokia will be supplying radio access networks (RAN) base stations (eNodeBs) in addition to Nokia NetAct(TM) for this project. NetAct provides advanced assurance capabilities that forms a key component of the company’s multi-domain Service Assurance program. NetAct is also utilized for providing railway operations and employee service management applications to KRNA. 

Despitestiff competition from peers like Cisco Systems, Inc. (CSCO - Free Report) , Motorola Solutions Inc. (MSI - Free Report) and InterDigital Inc. (IDCC - Free Report) , Nokia carries a Zacks Rank #3 (Hold),implying that the stock will perform in line with the broader U.S. equity market over the next one to three months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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