Major telecom equipment vendors Nokia-Siemens Network (NSN),
) and Huawei Technologies Co. have signed a Memorandum of
Understanding (MoU) that will allow them to improve
interoperability between different Operations Support Systems
(OSS). NSN is a joint venture between
Per the agreement, the three related parties have agreed to
license their OSS interface to each other for multi-vendor
network management, which will simplify the interoperability
between different OSS. Additionally, the partnership will speed
up time-to-market new services from operators and will also
reduce the OSS integration costs.
The deal, also termed an OSS interoperability initiative
(OSSii), will detect faults, measure performances, configure
network and will provide recent updates to management. Moreover,
any third party OSS vendor can access cross licensing and
interoperability testing facilities by joining the OSSii.
OSS necessarily integrates a number of telecom network
technologies from several equipment vendors and from other
telecom operator business systems making the process very complex
and costly. However, OSSii simplifies the network operations,
reducing the cost and time of the integration process.
NSN reported weak financial report for the first quarter of
2013. The company's revenues were down 5% as compared to the last
year. However, NSN's operating margin of $259 million was much
better than an operating loss of $103 million in the previous
quarter. The improved operating result was backed by NSN's
restructuring measures as the equipment vendor plans to slash
$1.35 billion in annual cost by 2013.
The OSSii agreement will largely enhance OSS development and
will allow telecom carriers to avail the best solutions available
within the industry. Although OSSii will promote healthy
competition for network level OSS systems, we believe that the
partnership will improve the top line prospect of NSN, going
Nokia currently carries a Zacks Rank #3 (Hold).Among the other
companies in the same industry where NSN operates,
), with a Zacks Rank #2 (Buy), is a better option for
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