Nokia Corporation (NOK - Free Report) was recently selected by state-owned telecommunication firm China Mobile Limited (CHL - Free Report) to provide 5G services across the country. The wireless services provider was also entrusted with the job of developing a new optical transport network in China to facilitate improved data center interconnect, consumer broadband services and 4G backhaul due to rapid proliferation of cloud and other 4G mobile services.
Nokia will leverage its 1830 PSS-24x platform to build the optical transport network throughout the country. Powered by Photonic Service Engine technology, this would offer seamless OTN (optical transport network) multilayer switching with high performance optics to meet the rising demands of cloud and 5G services.
Nokia’s dynamic and programmable optical network, which can support virtualization and cloud technologies associated with 5G, is expected to give the perfect competitive edge to China Mobile to drive further business growth. Moving forward, Nokia will help in the transition of global enterprises like China Mobile 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, Nokia is transforming the way people and things communicate and connect with each other. These include seamless transition to 5G technology, ultra broadband access, IP and Software Defined Networking, cloud applications, Internet of Things, as well as security platforms, data analytics, and sensors.
In order to strengthen its leading position in the market, Nokia facilitates its customers to move away from an economy-of-scale network operating model to demand-driven operations by offering easy programmability and flexible automation needed to support dynamic operations, reduce complexity and improve efficiency. Consequently, customers can fulfill end-user demands by provisioning services in real time while automatically making optimal use of networks assets. The company is also continuously expanding its business into targeted, high-growth and high-margin vertical markets to address growth opportunities beyond its traditional primary markets.
With a diligent execution of operational plans, Nokia has outperformed the industry with an average return of 12.2% in the last three months against a decline of 7.9% for the latter.
Rollouts of next-generation 5G networks are anticipated to improve market conditions significantly in 2019 and 2020. Nokia’s Networks division is also expected to grow faster than the primary addressable market over the long term.
Nokia carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry worth considering are Ceragon Networks Ltd. (CRNT - Free Report) and NTT DOCOMO, INC. each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ceragon Networks delivered an average positive earnings surprise of 8.3% in the trailing four quarters.
NTT DOCOMO has a long-term earnings growth expectation of 4.9%.
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