Nokia Solutions to Boost Armenia's Broadband Speed: Stock to Gain?
Nokia Corporation NOK recently inked an agreement with Team Telecom Armenia to deploy its 25G passive optical network (PON) fiber solution across the Asian country. With this, the telecom operator became one of the first carriers in the Caucasus and Central Asia regions to provide some of the fastest Internet speeds commercially available.
How NOK Powers the PON Fiber Solution
A PON is designed to provide a single fiber with the ability to maintain an efficient broadband connection for multiple end users. These end users are typically individual clients using PONs in a commercial environment. The PON architecture is becoming increasingly popular for its efficiency and cost-effectiveness over copper networks.
Leveraging Quillion chipset, Nokia’s 25G PON fiber broadband solution supports a full range of PON technologies, from GPON to 25G PON and beyond. This, in turn, will facilitate Team Telecom Armenia to utilize its existing fiber infrastructure to ramp up its capacity for faster connectivity to consumers. It also offers the flexibility to optimize services such as enterprise solutions, 5G mobile transport and network wholesaling.
NOK Offering O-RAN With Commercial 5G Cloud-RAN Networks
Nokia is poised to benefit from copper and fiber deployments of passive optical networking. It is reportedly the only global supplier offering Open Radio Access Network (O-RAN) with commercial 5G Cloud-RAN networks. The company intends to accelerate strategy execution, sharpen customer focus and reduce long-term costs. At the same time, it is focused on building a strong scalable software business and expand it to structurally attractive enterprise adjacencies. Nokia’s C-Band portfolio supports 5G standalone and non-standalone networks, cloud-based implementations and O-RAN products.
Will NOK Stock Benefit From the Collaboration?
Nokia has emerged as one of the leading players in the development of advanced 5G technology and is at the forefront of extending 5G use cases in various industries. It has laid a strong foundation of innovation through substantial infrastructure investments. This has led to the establishment of an impressive portfolio comprising approximately 20,000 patent families, including more than 6,000 patent families that are deemed crucial to 5G technology.
The collaboration with Team Telecom Armenia is likely to propel the stock on incremental revenue generation and inducement of similar deals from other carriers in the future. The deal is also expected to strengthen Nokia’s position as a leading telecommunications equipment provider in the region.
The stock has gained 17.3% over the past six months compared with the industry’s growth of 5.2%.
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NOK Zacks Rank & Stock to Consider
Nokia currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Arista Networks, Inc. ANET, sporting a Zacks Rank #1 at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experiences. Arista has a long-term earnings growth expectation of 17.2% and delivered an earnings surprise of 15%, on average, in the trailing four quarters.
It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed data center segment. Arista is increasingly gaining market traction in 200 and 400-gig high-performance switching products. It is well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.
AudioCodes Ltd. AUDC currently carries a Zacks Rank #2 (Buy). It delivered an earnings surprise of 10.1%, on average, in the trailing four quarters.
Headquartered in Lod, Israel, AudioCodes offers advanced communications software, products and productivity solutions for the digital workplace. It provides a broad range of innovative products, solutions and services that are used by large multi-national enterprises and leading tier-1 operators around the world.
Airgain, Inc. AIRG currently carries a Zacks Rank #2. It has a long-term earnings growth expectation of 35%.
Headquartered in San Diego, CA, Airgain offers integrated wireless solutions in the form of antenna products. These products are equipped to solve critical connectivity needs in both the design process and the operating environment across the enterprise, automotive and consumer markets. Ideal for original equipment and design manufacturers, vertical markets, chipset vendors, service providers, value-added resellers and software developers worldwide, the customizable antennas from Airgain serve both indoor and outdoor connectivity issues.
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Nokia Corporation (NOK) : Free Stock Analysis Report
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