Nokia Corporation (NOK - Free Report) recently announced that it has teamed up with the Irish Aviation Authority (“IAA”) to deploy industry-leading air traffic control network in North Atlantic airspace. Currently in service, the network has been established at the IAA’s West Ireland disaster recovery center. With more than 6.4 billion radio network subscriptions, the strategic deal emphasizes Nokia’s efforts to offer best-in-class mission critical networks, fueled by burgeoning migration of legacy services to advanced network infrastructure.
Per the deal, Nokia spurred the network deployment with supply of high-bandwidth backed Internet Protocol (IP) and Multi-Protocol Label Switching (MPLS). These networking products, which went live last year, augmented IAA’s capacity to deliver seamless critical radar and voice services to the controllers over IP/MPLS platform. Being one of the busiest airspace in the world, the North Atlantic network offers streamlined operations of air traffic control (ATC) applications and supports end-to-end communications between radar stations with highest standards of reliability.
With a rich history of deploying more than 1,300 mission-critical networks in energy, manufacturing, transport and public sector segments, Nokia aims to continue providing top-notch professional services ranging from network design to deployment with long-term support and maintenance services to the IAA. The Finnish telecommunications company stated that the global air traffic is expected to double by 2030 and it is leaving no stone unturned to manage the proliferating air traffic scenario.
Markedly, Nokia encourages customers to move away from an economy-of-scale network operating model to demand-driven operations by offering easy programmability and flexible automation. This, in turn, supports dynamic operations, reduces complexity and improves efficiency. The company seeks to expand its business into targeted, high-growth and high-margin vertical markets to address growth opportunities beyond its traditional primary markets.
In addition, 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 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, mission-critical applications, IP and Software Defined Networking, cloud applications and IoT.
Nokia’s shares have declined 49% compared with the industry’s fall of 4% in the past year. The company topped earnings estimates twice in the trailing four quarters but missed the same in the remaining quarters, delivering a positive surprise of 87.5%, on average. Nevertheless, we remain impressed with the inherent long-term growth potential of this Zacks Rank #3 (Hold) stock.
A few better-ranked stocks in the broader industry are Comtech Telecommunications Corp. (CMTL - Free Report) , Telenav, Inc. (TNAV - Free Report) and Perion Network Ltd. (PERI - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Comtech exceeded estimates in the trailing four quarters, the positive earnings surprise being 85.9%, on average.
Telenav outpaced estimates twice in the trailing four quarters, the positive earnings surprise being 77.1%, on average.
Perion surpassed estimates in the trailing four quarters, the positive earnings surprise being 87.9%, on average.
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