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Nokia Partners with Ooredoo Qatar to Build 5G Core Network

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Recently, Nokia Corporation NOK announced that it has been chosen by Ooredoo Qatar — a leading telecommunications company — to build the latter’s 5G cloud native core network. The Finnish telecom equipment vendor’s solution will be deployed in Ooredoo’s avant-garde datacenters in Doha, to deliver improved mobile broadband services to customers.

Notably, the technology company’s cloud-based architecture for core network is scalable, agile and flexible. Nokia AirFrame, CloudBand, voice and Cloud Packet Core, and Nuage Networks Software Defined Network are being deployed in the core network. Nokia’s solution provides low latency and high throughput that will likely support Ooredoo’s business objectives. It supports mobile access network technologies and allows customers to bring new 5G services to market.

Nokia’s comprehensive 5G portfolio is likely to provide Ooredoo’s customers with ultra-high bandwidth and low-latency services, alongside new applications in areas like virtual reality, augmented reality and artificial intelligence. Enterprises are also likely to gain from various IoT vertical use cases enabled by 5G as it will help enhance operational efficiency and user experiences while providing new revenue streams.

In addition, Nokia’s deal-win rate appears encouraging with remarkable success in the key 5G markets of the United States and China. It is expanding business into targeted, high-growth and high-margin vertical markets to address opportunities beyond its traditional markets. Rollout of next-generation 5G networks are expected to improve market conditions considerably through 2019 and beyond, auguring well for Nokia’s business development.

To stoke its competitive position, Nokia helps 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 increase efficiency. Supported by expected 5G ramp up, Nokia has reiterated its guidance for 2019 and expects non-IFRS operating margin between 9% and 12%. Non-IFRS EPS is expected in the range of €0.25-€0.29.

Nokia continues to execute its strategy with particularly good progress in Nokia Software and expansion to select enterprise vertical markets. It aims to accelerate strategy execution, sharpen customer focus and reduce long-term costs. This will help the company position itself for long-term 5G leadership and reaffirm commitment to full-year 2020 non-IFRS operating margin between 12% and 16% and non-IFRS EPS in the range of €0.37-€0.42 guidance.

Shares of Nokia have incurred an average loss of 21.5% against the industry’s rise of 16.9% over the past three months. This can be attributed to increased competition, resulting in loss of its market share. However, the company is witnessing healthy underlying momentum in its strategic focus areas of software and enterprise, which augurs well for its licensing business.


 

Nokia currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include Juniper Networks, Inc. JNPR, Motorola Solutions, Inc. MSI and Viasat, Inc. VSAT, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Juniper has long-term earnings growth expectation of 6.2%.

Motorola has long-term earnings growth expectation of 7.7%.

Viasat has long-term earnings growth expectation of 15.3%.

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