Nokia Corporation NOK recently announced that its CloudBand-based software products have been deployed in Bharti Airtel’s VoLTE network in India. The Finland-based telecom gear maker’s CloudBand portfolio makes it simple to orchestrate, automate and manage virtualized network functions (VNFs) as well as services.
Importantly, Airtel’s network supports more than 110 million customers that make it the largest cloud-based VoLTE network in India and the biggest Nokia-powered VoLTE in the world. The deployment enables Airtel to provide its mobile customers faster and more reliable, cost-efficient call connectivity. The solution, covering all 22 telecom service areas across the country, uses Commercial Off-the-Shelf IT hardware with cloud-based VNFs. These consume significantly less power and space compared with 2G or 3G Circuit Switched legacy core.
Nokia’s VoLTE solution enables Airtel to free up the spectrum by ramping down its 3G network. This will help the operator utilize an extra spectrum to deploy 4G services for better speed and capacity. Moreover, Airtel will deploy Nokia’s CloudBand Infrastructure Software to create new revenue opportunities for 5G and Internet-connected devices.
CloudBand is an open and scalable platform that will allow Airtel to adapt network capacity to cope with the changing consumption patterns in a cost-efficient way. It will enable Airtel to lay the foundation for 5G networks and deliver new digital services with greater flexibility. Nokia’s multi-cloud management solutions with analytical capabilities will facilitate Airtel to design a network architecture that delivers new capabilities for its customers.
Meanwhile, Nokia is developing its 5G portfolio, strengthening AirScale and 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. Nokia is witnessing a healthy momentum in its focus areas of software and enterprise, which augurs well for its licensing business.
The company’s end-to-end portfolio includes products and services for every part of a network, which helps operators 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.
At the same time, the company seeks to expand its business into targeted, high-growth and high-margin vertical markets to address opportunities beyond its primary markets. It had earlier announced plans to accelerate strategy execution, sharpen customer focus and reduce long-term costs. This, in turn, is likely to position the company as a global leader in the delivery of end-to-end 5G solutions.
Nokia has a long-term earnings growth expectation of 15.6% compared with 14.8% of the industry. The stock has rallied 40.5% compared with the industry’s growth of 20% in the past three months.
Nokia currently carries a Zacks Rank #2 (Buy) and has a VGM Score of B.
Some other top-ranked stocks in the broader industry are Turtle Beach Corporation HEAR, Ooma, Inc. OOMA and Acacia Communications, Inc. ACIA, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Turtle Beach has a trailing four-quarter positive earnings surprise of 46.4%, on average.
Ooma has a trailing four-quarter positive earnings surprise of 228.2%, on average.
Acacia has a trailing four-quarter positive earnings surprise of 17.7%, on average. The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters.
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