Nokia-Siemens Networks (NSN), a 50-50 joint venture between
), has won a network expansion contract from Korek telecom in
southern Iraq. This is the second Middle East contract for NSN,
which followed the recently won $325 million LTE contract in
Per the agreement, NSN will supply Korek Telecom with its Core
and Radio Access Network (RAN) product along with providing care
and managed services. However, the amount and the period of the
contract were not disclosed.
Notably, Korek Telecom is the fastest growing mobile carrier
in Europe and offers mobile data via GPRS and EDGE technology. As
part of the radio contract, NSN will provide its "Flexi Direct"
product, which reduces delay in data transmission, enhancing
Internet speed and voice calls.
Additionally, Korek Telecom is planning to rollout HSPA (High
Speed Packet Access) network, based on 3G technology. Thus, the
company is deploying NSN's energy efficient "Flexi Multi radio
Base Stations", which supports 2G, 3G and LTE network. As part of
its Core Network, the equipment vendor will supply EPC (Evolved
Packet Core) platform that includes service-aware charging
function and a security solution. These unique facilities will
allow Korek to get steady access to various data plans and also
protect its data content.
In the recently concluded 2Q13, Nokia Siemens reported mixed
financial results. While the revenues declined 16.8% on an
annualized basis, the company's adjusted operating profit surged
an enormous 1,072% year over year. It seems that the
restructuring effort is yielding improved results for the
We believe that the contract will strengthen NSN's presence in
the Middle East and Africa region, where the company serves a
population of 1.2 billion. NSN serves some of the big telecom
Vodafone Group Plc.
), Etisalat Vodacom. The deal will be a major win over rival
), which has been an early entrant in the war prone country.
Recently, Nokia agreed to acquire the remaining stake of
Siemens AG for nearly $2.15 billion. Both Nokia and Siemens
expect to complete the deal in the third quarter of 2013, subject
to customary regulatory approvals.
Nokia currently carries a Zacks Rank #3 (Hold).
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