Nokia Siemens Networks - a 50-50 joint venture between
) achieved lightning fast TD-LTE network speed of 1.6 Gigabits per
Increased usage of smartphones and tablets coupled with higher
downloads of HD movies have stimulated demand for data usage and
faster network speed. Consequently, to suffice the need of the data
hungry customers, the telecom companies are continuously upgrading
their network services from 2G to 3G and now to advanced 4GLTE
technology, which is at present offering a maximum data downloading
speed of 1Gbps. Therefore, as per Nokia Siemens, attaining such
record speed of 1.6 Gbps will enable customers to download an HD
movie in less than 24 seconds.
Nokia's Nokia-Siemens Networks segment offers wireless and fixed
network infrastructure and networks service platforms in addition
to professional services to telecom operators and service
providers. It develops GSM, EDGE, and 3G/WCDMA/HSPA radio access
networks and cellular transmission network solutions for mobile and
fixed network operators.
In the recently concluded quarter, Nokia-Siemens Networks
segment generated revenue of $4,295 million, down 8% year over
year. However, we believe that the business scenario for
Nokia-Siemens is expected to change in the years to come as more
telecom operators start deploying TD-LTE technology in their
respective footprints. Moreover, huge availability of 4GLTE-based
smartphones coupled with the launch of
) first 4GLTE-based iPhone 5 will further put pressure on telecom
carriers to speed up their TD-LTE commercial launch date.
Furthermore, the world's largest telecom operator
China Mobile Limited
), which covers nearly 75% of Chinese market, also plans to rollout
TD-LTE technology in the upcoming months and will be using
Nokia-Siemens technology, which we believe will act as a huge
catalyst for growth going forward.
According to the latest report provided by the Global mobile
Suppliers Association (GSA), out of the total 11 TD-LTE
commercially deployed by the telecom carriers, 5 are using
Nokia-Siemens Networks' equipments.
Taking all these factors into consideration we believe that
Nokia's this particular segment will register impressive results in
the upcoming quarters.
We retain our long-term Neutral recommendation on Nokia Corp.
Currently, it has a Zacks #3 Rank, implying a short-term Hold
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