Accelerating its pace to offer the best mix of 5G network capacity and coverage to subscribers across the United States, Nokia Corporation (NOK - Free Report) recently announced that it has achieved impressive gigabit speeds in a trial of advanced 5G technology on a C-Band spectrum. Notably, the trial leveraged Nokia’s AirScale 5G base station equipment to deliver end-to-end 5G solution with industry-leading latency and connectivity. Touted as the first company to showcase live C-Band network in the United States, the latest achievement is expected to help businesses and customers with superior network capacity, especially at a time when communication service providers are shifting toward automated network operations for seamless connectivity.
Specifically designed to support Nokia AirScale base stations, the 5G-backed radio access network (RAN) leverages intelligent analytics and advanced automation techniques to maximize the performance of hybrid networks. Notably, the innovative solution is equipped with massive MIMO Adaptive Antennas and Compact Active Antennas that improve spectral efficiency and throughput capacity to enhance 5G and gigabit experience. The avant-garde technology enables operators to capitalize on 5G-backed opportunities to boost profitability as well as maximize the value of licensed and unlicensed spectrum with reduced capital expenditures.
Notably, the pilot run of 5G network on C-Band spectrum was demonstrated in Dallas, TX, with the help of Nokia’s AirScale 5G base station equipment. The trial witnessed impressive speeds of more than 1 Gbps with frequencies ranging from 3.4 GHz to 4.2 GHz. As the deployment of C-Band spectrum is being looked upon as a vital resource for network operators, Nokia is all geared up to undertake bulk shipments of these ground-breaking solutions to global carriers ahead of the C-Band spectrum auction later in December this year. Further, network deployments are expected in the first half of 2021. Given the predominance of mid-band spectrum for 5G services, the latest speed test is likely to reinforce the ability of 5G to deliver ultra-fast mobile broadband to consumers.
Last month, Nokia achieved a record 5G speed of up to 4.7 Gbps in its Over-the-Air network, backed by 800 MHz of millimeter-Wave spectrum and Dual Connectivity, marking a significant milestone in the development of 5G technology in the United States. Notably, the 5G speed test leveraged EN-DC functionality or dual connectivity, thereby enabling the operators to maximize their spectrum assets and transmit data simultaneously across 5G and 4G networks with higher transmission rates. Also, Nokia leveraged the upcoming spectrum auction as an opportunity to pitch for a larger slice of 5G business from major U.S. operators. With the recent achievement in C-Band space, Nokia has made a significant progress in its 5G portfolio.
Nokia is focused on building a robust scalable software business and expand it to structurally attractive enterprise adjacencies. It has reached more than 66 commercial 5G contracts across the globe with 19 live networks. The company’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. Accelerated strategy execution, sharpened customer focus and reduced long-term costs are expected to position Nokia as a global leader in the delivery of 5G solutions. However, macroeconomic and competitive dynamics continue to impact Nokia’s performance. It is yet to be seen whether these successful demonstrations can give Nokia’s 5G efforts a boost as it competes with the likes of Ericsson (ERIC - Free Report) and Cisco Systems, Inc. (CSCO - Free Report) for market share.
Nokia’s shares have rallied 63.4% compared with the industry’s growth of 36.9% in the past three months. The Zacks Rank #3 (Hold) stock topped earnings estimates twice in the last four quarters. It has a trailing four-quarter positive earnings surprise of 129.1%, on average.
A top-ranked stock in the industry is PCTEL, Inc. (PCTI - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
PCTEL’s bottom line surpassed the Zacks Consensus Estimate thrice in the last four quarters. The company has a trailing four-quarter positive earnings surprise of 33.9%, on average.
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