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Nokia Partners With Sudatel to Offer Ultra-Broadband Services

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Nokia Corporation (NOK - Free Report) recently entered into a strategic partnership with Sudatel — a telecommunications and Internet service provider, based in Sudan. Per the deal, both the companies will work on the development of ultra-broadband services in Sudan.

Notably, the partnership will support Sudatel’s 2020 Strategy, under which Sudatel aims to transform itself from a traditional telecom operator to an ICT provider. The collaboration will enable both the companies to trial Nokia 4.5G Pro, 4.9G and 5G mobile technologies along with Nokia’s fixed fibre-to-the-home (FTTH) portfolio. As a result, mobile and residential broadband experience across the country is expected to improve significantly.

Under the collaboration, Nokia and Sudatel will perform a number of different use-case tests, leveraging Nokia fixed and mobile technologies in Nokia Laboratories, located in Espoo and Antwerp. The technologies to be used in the trial are likely to be implemented in Khartoum. This, in turn, is expected to enhance network capacity and speed through the AirScale radio access. Additionally, this partnership will allow Sudatel to trial Nokia's passive optical networking (PON) fiber solutions for improving the residential broadband experience.

Our Take

Nokia has successfully become a leading player in the mobile and fixed network infrastructure with the industry’s most complete, end-to-end portfolio of products, services and licensing. Currently, the company 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.

In the past six months, this Zacks Rank #3 (Hold) company has outperformed the industry it belongs to. The stock has returned 16.4% against the industry’s 2.7% decline.

Moreover, the company is expected to benefit from the rollouts of next-generation 5G networks, which is likely to improve the market conditions significantly in 2019 and 2020. Also, Nokia’s Networks division is anticipated to grow faster than the primary addressable market over the long term.

However, Nokia has considerable operations in geographies outside the United States. Its significant international presence exposes it to political and economic disruptions, all of which might directly impact the company’s profits.

Key Picks

Some better-ranked stocks from the same space are Comtech Telecommunications Corp. (CMTL - Free Report) , Juniper Networks, Inc. (JNPR - Free Report) and Ubiquiti Networks, Inc. (UBNT - Free Report) . While Comtech Telecommunications sports a Zacks Rank #1 (Strong Buy), Juniper Networks and Ubiquiti Networks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Comtech Telecommunications exceeded estimates in the preceding four quarters, with an average positive earnings surprise of 123.70%.

Juniper Networks surpassed estimates thrice in the trailing four quarters, with an average positive earnings surprise of 3.35%.

Ubiquiti Networks outpaced estimates thrice in the preceding four quarters, with an average earnings surprise of 8.88%.

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