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Nokia (NOK) to Expand A1 Telekom’s 5G Footprint in Key Markets – August 23, 2021

Nokia Corporation (ENOUGH Free report) recently concluded a deal with A1 Telekom Austria Group to expand the operator’s 5G services in Bulgaria, Serbia and Slovenia, while strengthening its presence in the domestic market. A multi-country deal with a single provider such as Nokia will enable A1 Telekom, the European unit of América Móvil, SAB de CV (AMX Free report), to offer commercial 5G services throughout the region and to work together to deploy premium digital services in the near future.

Under the deal, the telecommunications equipment maker will provide 5G RAN solutions from its leading AirScale portfolio in all three markets and a stand-alone 5G network in Serbia and Slovenia. While the project is already underway in Bulgaria, construction work on the other two markets is expected to begin soon.

By unlocking network efficiency with shared interoperability, software delivery, and increased hardware sharing, Nokia has been able to reduce the overall cost of ownership for mobile operators. The company is well positioned for the current technology cycle given the strength of its portfolio from end to end. Its installed base of high-capacity AirScale products is growing rapidly. AirScale Radio Access products provide low-latency, high-capacity, low-cost mobile connectivity and can be easily upgraded with software updates, reducing network complexity. Nokia already provides this full 5G coverage to A1 Telekom in Austria and this agreement aims to further expand the scope of this long-term partnership.

By deploying industry-leading software, 5G RAN and IP-Backhaul solutions for this project, Nokia will help develop reference design and build cases using standard-based solutions. The commercial availability of its stand-alone 5G network has enabled the company to take the next big step in the evolution of the 5G ecosystem to make it more widespread around the world. So far, 5G networks have been deployed mainly in Non-Standalone mode, and the availability of the 5G network depends on the main LTE network for signal support. The stand-alone 5G network eliminates this 4G dependency by enabling carriers to expand their networking capabilities with a simpler architecture. It also improves network speed and simplifies mobility management with seamless access to wide 5G bands for a better user experience. Nokia will provide A1 Telekom in Slovenia and Serbia with automatic zero-touch automation capabilities with its stand-alone core network to be flexible to better meet changing market demands.

The company stimulates the transition of global enterprises to 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 for their management. Using state-of-the-art technology, Nokia is transforming the way people and things communicate and connect with each other. These include a seamless transition to 5G technology, ultra broadband, IP and software-defined networks, cloud applications and the Internet of Things.

The company makes it easier for its customers to move from an economically large-scale network operation to demand-based operations by offering the easy programmability and flexible automation needed to maintain dynamic operations, reduce complexity and improve efficiency. Nokia remains focused on building a stable, scalable software business and expanding it into structurally attractive neighboring businesses. He has signed more than 170 commercial 5G contracts worldwide. The company’s end-to-end portfolio includes products and services for each part of the network that help operators activate key 5G capabilities, such as networking, distributed cloud and industrial IoT. Accelerated implementation of the strategy, sharpened focus on customers and reduced long-term costs are expected to position the company as a world leader in providing 5G solutions from end to end.

Shares have risen 17.3% over the past year compared to industryrally of 23.4%.


Image source: Zacks Investment Research

We are impressed by the inherent growth potential of this stock of Zacks Rank # 3 (Hold). Several better ranked stocks in the wider industry are Juniper Networks, Inc. (JNPR Free report) and Qualcomm Incorporated (QCOM Free report), wearing Zacks rank # 2 (Buy). You can see the full list of today’s shares of Zacks # 1 (Strong Buy) here.

Juniper has a long-term profit growth of 11.8%. It brought a surprise profit of 7.5% on average over the four quarters.

Qualcomm has a long-term profit growth of 21%. It brought a surprise profit of 13.5% on average over the four quarters.

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