Nokia Networks — the largest division of Nokia Corporation (NOK - Free Report) — recently announced that it is introducing new Fixed Wireless Access products to support communications service providers in expediting the deployment of ultra-broadband. This is in line with its concerted efforts to enable the infrastructure for 5G superfast networks in new markets. Notably, the Finnish telecom equipment manufacturer’s improved portfolio comprises new FastMile high-gain outdoor receivers and indoor gateways. These can be easily installed and vastly improve end-user experience.
As telecom operators continue to advance their 4G networks with technological upgrades, massive investments for fifth generation (5G) mobile networks development have gained pace attributable to “much faster, much lower latency and greater capacity”. Following Blue Ocean Strategy, industry players can generate new sources of revenues from the delivery of ultra-broadband services using Fixed Wireless Access (FWA) technologies. Through FWA, operators can provide Internet access to homes using wireless mobile network technology rather than fixed lines.
In order to strengthen its leading position in the wireless ecosystem, Nokia FastMile will deliver enhanced speeds on 4G networks to wider areas with high-gain outdoor receivers that improve spectral efficiency by 4-5x compared to indoor antennas, resulting in higher speeds, better performance at the cell edge and lower radio access network costs for operators. The solution offers the flexibility to use existing wireless networks to deliver fast and reliable ultra-broadband access to homes and businesses.
Furthermore, the company is launching a series of powerful indoor gateways in the first half of 2019, with high-gain antennas and 4x4 multiple-input and multiple-output to deliver superior performance. The products include options for plain old telephone service and Ethernet ports. Operators can rapidly add FWA to their portfolio with minimal upfront costs with high gain outdoor and indoor models, and will be able to deliver gigabit peak speeds with the evolution to 5G.
Nokia maintains a distinctive position in the mobile and fixed network infrastructure with the industry’s most complete, end-to-end portfolio of products and services. However, in the past three months, shares of Nokia have lost 12.5% against growth of 4.6% recorded by the industry, primarily due to the negative impact of foreign currency exchange-rate on its overall business as well as soft market conditions across its geographical operations. It is to be seen if such state-of-the-art service offerings in a B2B model will help the company revive profitability in coming quarters.
Nokia currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include Comtech Telecommunications Corp. (CMTL - Free Report) , Ubiquiti Networks, Inc. (UBNT - Free Report) and Ribbon Communications Inc. (RBBN - Free Report) . While Comtech and Ubiquiti sport a Zacks Rank #1 (Strong Buy), Ribbon Communications carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Comtech has a long-term earnings growth expectation of 5%. It beat earnings estimates in each of the trailing four quarters, the average surprise being 136%.
Ubiquiti has a long-term earnings growth expectation of 18.6%. It surpassed earnings estimates thrice in the trailing four quarters with an average positive surprise of 9%.
Ribbon Communications has a long-term earnings growth expectation of 12%. It beat earnings estimates in each of the trailing four quarters, the average surprise being 168.1%.
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