In a concerted effort to deliver unparalleled network capacity, Nokia Corporation NOK collaborated with a leading wireless service provider — Sprint Corporation S — for the deployment of 5G network through a software upgrade on Nokia’s much-acclaimed AirScale solution. The partnership is likely to aid businesses and customers with reliable network connectivity, especially at a time when majority of communication service providers (CSPs) migrate toward experience-driven and automated 5G network operations.
Markedly, Nokia is focused on its strategy that centers on four priorities. The first priority is to lead in high-performance end-to-end networks with its CSP customers. The second priority is based on its relentless pursuit to expand network sales to select vertical markets, specifically energy, transportation, public sector, technical extra-large enterprises and webscale players. Building a strong standalone software business remains the third strategic priority. The fourth pillar aims to create new business and licensing opportunities in the consumer ecosystem.
Equipped with intelligent analytics and automation, the Finnish company’s AirScale Radio Access is a ground-breaking technology that provides enhanced 5G network capacity with ultra-low latency and seamless connectivity solutions. Touted as industry’s first-of-its-kind commercial end-to-end 5G solution, the avant-garde technology enables operators to capitalize 5G-backed opportunities on a nascent stage. The innovative solution also allows operators to boost profitability, support environment-friendly operations and maximize the value of both licensed and unlicensed spectrum with minimum future capital expenditures.
Markedly, the lab test was conducted with the help of Sprint’s 2.5 GHz spectrum and E-UTRAN New Radio - Dual Connectivity (EN-DC) and Multi-User-Multiple Input Multiple Output (MU-MIMO) technology. Impressively, this innovative blend of next-gen technology, delivered record speeds of 3 Gbps, by only leveraging a single AirScale unit. Per Statista data, the trailblazing platform is anticipated to benefit the operators with enhanced 5G services by 2022. Notably, with the emergence of rapid technological investments, the upgrade is considered to be the need of the hour with exceptional 5G network capacity. Till date, the Overland Park, KS-based wireless communications company tapped Nokia for 5G launches in Los Angeles, Washington DC, Phoenix and New York.
Lately, Nokia has been developing its 5G portfolio, strengthening AirScale and further advancing the capabilities of its ReefShark chipset. The company is working with multiple partners to support its ReefShark family of chipsets, which are used in many base station elements. In Mobile Access, it expects the improvement to be driven by increasing shipments of “5G Powered by ReefShark” portfolio, product cost reductions, better commercial management and strong operational performance in services.
Nokia’s end-to-end portfolio includes products and services for every part of a network, which are helping operators to enable key 5G capabilities such as network slicing, distributed cloud, and industrial IoT. It facilitates customers to move from an economy-of-scale network operating model to demand-driven operations by offering easy programmability and automation. It is witnessing healthy underlying momentum in its focus areas of software and enterprise, which augurs well for its licensing business.
The company is expanding its business into targeted, high-growth and high-margin vertical markets to address several opportunities beyond its primary markets. It had announced plans to accelerate strategy execution, sharpen customer focus and reduce long-term costs. This, in turn, should help the company to position itself as a global leader in the delivery of end-to-end 5G solutions. However, macroeconomic dynamics and competitive pressure from arch-rivals, Ericsson ERIC and Huawei, are likely to create near-term pressure for the Finnish vendor.
Nokia’s shares have decreased 49.5% compared with the industry’s decline of 13.4% in the past year. The Zacks Rank #3 (Hold) stock 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.
A better-ranked stock in the industry is Comtech Telecommunications Corp. CMTL, 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.
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