Canada markets closed
  • S&P/TSX

    18,444.22
    +2.38 (+0.01%)
     
  • S&P 500

    3,585.62
    -54.85 (-1.51%)
     
  • DOW

    28,725.51
    -500.10 (-1.71%)
     
  • CAD/USD

    0.7231
    -0.0079 (-1.08%)
     
  • CRUDE OIL

    79.71
    -1.52 (-1.87%)
     
  • BTC-CAD

    26,925.42
    -38.13 (-0.14%)
     
  • CMC Crypto 200

    444.83
    +1.40 (+0.32%)
     
  • GOLD FUTURES

    1,670.40
    +1.80 (+0.11%)
     
  • RUSSELL 2000

    1,664.72
    -10.21 (-0.61%)
     
  • 10-Yr Bond

    3.8040
    +0.0570 (+1.52%)
     
  • NASDAQ

    10,575.62
    -161.89 (-1.51%)
     
  • VOLATILITY

    31.62
    -0.22 (-0.69%)
     
  • FTSE

    6,893.81
    +12.22 (+0.18%)
     
  • NIKKEI 225

    25,937.21
    -484.84 (-1.83%)
     
  • CAD/EUR

    0.7377
    -0.0065 (-0.87%)
     

Nokia (NOK) Extends 5G Coverage Deal With Taiwan Mobile

·5 min read

Nokia Corporation NOK has extended its more than two-decade-old business relationship with Taiwan Mobile to offer advanced 5G communications equipment to the carrier. The contract expansion deal entails Nokia supplying energy-efficient gear to enable the service provider to deliver resilient connectivity and expanded coverage to subscribers and business enterprises in the region.

The company will offer AirScale Radio Access products to deliver low-latency, high-capacity broadband connectivity. This commercial end-to-end 5G solution will enable Taiwan Mobile to meet higher demand for data and optimize operations with low costs of ownership. At the same time, the carrier will leverage several software solutions providing cloud and security services to augment its network capabilities and achieve its target of utilizing 100% renewable energy by 2040.

Nokia will also offer dynamic spectrum sharing (DSS) technology to Taiwan Mobile that synchronizes the spectrum usage between 4G and 5G and helps network operators to reuse lower-frequency 4G radio networks for 5G deployment. The DSS strategy enables the rollout of both 4G and 5G in the same band and proactively allocates spectrum resources between them based on user demand.

Additionally, Nokia will deploy its 5G Standalone Core network to enable Taiwan Mobile to offer advanced 5G applications such as network slicing to business enterprises and Edge Cloud for low-latency services. In particular, the communications equipment firm will deploy AirFrame server hardware with Multi-access Edge Computing capabilities, IMS Voice Core capacity expansion and Voice over New Radio for this purpose.

Nokia’s 5G portfolio will provide a solid foundation to scale up Taiwan Mobile’s legacy network infrastructure within dynamic cloud environments, with a sharp focus on scalability, automation and performance. This, in turn, will enable the carrier to deliver 5G services with Unified Data Management, Signaling and improved network functions. Network Exposure function is also included for future 5G application innovation and business evolution, while NetAct Network Management will help Taiwan Mobile better operate the infrastructure.

Nokia is well-positioned for the ongoing technology cycle, given the strength of its end-to-end portfolio. Its installed base of high-capacity AirScale products, which enable customers to quickly upgrade to 5G, is growing fast. 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 the 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, IP and Software Defined Networking, cloud applications and IoT.

In order to strengthen its leading position in the market, Nokia facilitates its customers to move away from an economy-of-scale network operating model to demand-driven operations by offering easy programmability and flexible automation needed to support dynamic operations, reduce complexity and improve 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.

Nokia remains focused on building a robust scalable software business and expanding it to structurally attractive enterprise adjacencies. It has reached more than 221 commercial 5G contracts across the globe, with 75 live networks. The company’s end-to-end portfolio includes products and services for every part of a network, which are helping operators 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 the company as a global leader in delivering end-to-end 5G solutions.

Nokia’s shares have lost 1.4% compared with the industry’s decline of 8.4% in the past year. We remain impressed with the inherent long-term growth potential of this Zacks Rank #3 (Hold) stock.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Clearfield, Inc. CLFD, sporting a Zacks Rank #1 (Strong Buy), is a solid pick for investors in the broader industry. You can see the complete list of today’s Zacks #1 Rank stocks here.

Clearfield delivered an earnings surprise of 37.5%, on average, in the trailing four quarters. Earnings estimates for the current year for the stock have moved up 114.7% since May 2021. Over the past year, Clearfield has gained a solid 57.5%.

InterDigital, Inc. IDCC also sports a Zacks Rank #1. It has a long-term earnings growth expectation of 15% and delivered a stellar earnings surprise of 141.1%, on average, in the trailing four quarters. Earnings estimates for the current year have moved up 88.5% since May 2021.

InterDigital is focused on pursuing agreements with unlicensed customers in the handset and consumer electronics markets. The company aims to become a leading designer and developer of technology solutions and innovation for the mobile industry, IoT and allied technology areas. InterDigital’s global footprint, diversified product portfolio and the ability to penetrate different markets are impressive.

Sierra Wireless, Inc. SWIR carries a Zacks Rank #2 (Buy). It has a long-term earnings growth expectation of 15% and delivered an earnings surprise of 223.7%, on average, in the trailing four quarters.

Over the past year, Sierra Wireless has gained 40.3%. Earnings estimates for the current year for the stock have moved up 616.7% since May 2021. The company continues to launch innovative products for business-critical operations that require high security and optimum 5G performance.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Sierra Wireless, Inc. (SWIR) : Free Stock Analysis Report
 
Nokia Corporation (NOK) : Free Stock Analysis Report
 
InterDigital, Inc. (IDCC) : Free Stock Analysis Report
 
Clearfield, Inc. (CLFD) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research