Nokia-Siemens Network ("NSN") - a 50-50 joint venture between
) - has decided to extend its partnership with Mobile TeleSystems
(MTS) - a leading telecom operator in Russia. The partnership
will deploy TD-LTE technology across Moscow and Central Russia in
the third quarter of 2013.
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As per the three-year contract, NSN will supply FDD LTE radio
access, IP core network equipment and services to MTS' 2,600 MHz
and 800 MHz frequency band. Moreover, NSN will install its NetAct
network management system for better configuration, monitoring
and optimal network utilization. The Russian carrier will pay
$200 million to Nokia-Siemens for the extended period.
Higher adoption of smartphones and tablets has resulted in huge
network congestion. So, to improve network speed, these carriers
are continuously upgrading their network capacity by deploying
NSN's 4GLTE equipment are widely used by most carriers worldwide
are hugely popular after
) and Huawei. In the recently concluded first-quarter 2013, NSN
generated $3.6 billion of revenues. Europe was the second highest
contributor with $990 million of revenues after the Asia-Pacific
region. Thus, we believe that wining such major contracts in
Russia will certainly bolster the company's top line.
Moreover, the world's largest telecom operator,
China Mobile Ltd
), is targeting to deploy nearly 200,000 TD-LTE base stations by
the end of 2013. This will further boost NSN's 4GLTE equipment
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).