Nokia Corporation NOK recently announced that one of Europe’s largest network operators Deutsche Telekom has opted to utilize the NOK industry leading portfolio to advance Open RAN (Radio Access Network) deployment in Germany. Deutsche Telekom is committed to establishing a robust multi-vendor Open RAN environment by increasing the supplier choices for radio access networks.
Advantages of Multi-Vendor Open RAN
Multi-vendor Open RAN architecture offers numerous advantages for network operators. It eliminates the risk associated with vendor lock-in and enables operators to choose hardware and software solutions that better suit their specific requirements. This greater flexibility allows operators to scale their network effectively and simplify the integration of new technologies. These capabilities drive cost efficiency in operations, boost coverage and speed, and lower latency, leading to enhanced experience for end users.
NOK’s Role in Deploying Open RAN in Germany
To scale up the O RAN in Germany, Deutsche Telekom has awarded Nokia 3000 sites across the country. Per the agreement, Nokia will offer several equipments such as modular, high-capacity baseband solutions, high-performance Habrok Massive MIMO radios and more. This product suite from its O-RAN compliant 5G Airscale portfolio powered by energy-efficient ReefShark System-on-Chip technology will offer premium coverage and capacity, ensuring consistent performance, resiliency and greater security for Open RAN architecture.
Deutsche Telekom will utilize NOK’s AI-native MantaRay solution to enhance network management and monitoring. Moreover, the solution will also facilitate various AI services, such as digital deployment, optimization and technical support. The integration of these leading-edge solutions will enable Deutsche Telekom to swiftly scale up its O RAN capabilities nationwide and improve overall customer experience.
Will This Venture Drive NOK’s Share Performance?
Multi-vendor O RAN architecture is gaining traction worldwide, owing to the benefits it offers to both network operators and customers compared to traditional setups. Nokia, with its comprehensive portfolio, is well-positioned to gain from this emerging trend.
The recent deal marks Nokia’s return as a key supplier for Deutsche Telekom, replacing the incumbent vendor Huawei. The partnership is a testament to Nokia’s growing technological leadership in the Open RAN space and strengthens its competitive position in the European Telecom market.
NOK’s Stock Price Movement
Shares of Nokia have gained 18.7% over the past year compared with the industry’s growth of 41%.
Image Source: Zacks Investment Research
NOK’s Zacks Rank and Key Picks
Nokia currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader industry have been discussed below.
Zillow Group, Inc. ZG carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the last reported quarter, it delivered an earnings surprise of 9.38%. ZG delivered an earnings surprise of 25.47%, on average, in the trailing four quarters. The company is witnessing solid momentum in rental revenues, driven by growth in both multi and single-family listings, which is a positive factor.
InterDigital IDCC sports a Zacks Rank #1 at present. In the last reported quarter, it delivered an earnings surprise of 114.47%.
It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions used in digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.
Workday Inc. WDAY carries a Zacks Rank of 2 at present. In the last reported quarter, it delivered an earnings surprise of 9.88%.
WDAY is a leading provider of enterprise-level software solutions for financial management and human resource domains. The company’s cloud-based platform combines finance and HR in a single system, making it easier for organizations to provide analytical insights and decision support.
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