Nokia to Boost Converge ICT Broadband Services in Philippines

Nokia Corporation NOK has announced that Converge ICT, a leading Internet and digital services provider in the Philippines, opted for its fiber-to-the-home solution to bring broadband services to the island of Mindanao. The service provider aims to expand its network coverage by connecting more than 300,000 homes and enterprises with superior broadband services over the next three years.

Nokia is well positioned to benefit from copper and fiber deployments of passive optical networking. In this project, the Finland-based company’s solution includes GPON technology that will enable Converge ICT to deliver enhanced speeds and better quality. Nokia’s ISAM FX will provide the flexibility to choose the fiber technology and deployment density that best suits the service offering. It also involves Nokia’s 7360 (ISAM) FX 8/4 platforms that support 10G PON and beyond along with Software-Defined Access Network.

Nokia’s fiber solution will enable Converge ICT to deliver a premium broadband service to customers. The availability of fiber-based Internet connectivity is likely to create new opportunities for Mindanao to grow economically. Converge ICT’s infrastructure will allow it to provide an excellent broadband network to subscribers, especially during the COVID-19 pandemic. These are unprecedented times when people are increasingly using digital platforms for their day-to-day activities.

Meanwhile, Nokia is making good progress in its Mobile Access business while enhancing cash generation. The company aims to accelerate its product roadmaps and cost competitiveness through additional 5G investments in 2020. Nokia is witnessing a healthy momentum in its focus areas of software and enterprise, which augurs well for its licensing business.

The company is the only global supplier committed to Open RAN with commercial 5G Cloud-RAN networks. Also, it expanded its IP routing business into the data center market. Nokia seeks to expand its business into targeted, high-growth and high-margin vertical markets to address opportunities beyond its primary markets.

Nokia’s shares have returned 69.4% in the past six months compared with 55.9% growth of the industry. The company has a long-term (three to five years) earnings growth expectation of 15.6% compared with the industry’s 15.2%.

The Zacks Consensus Estimate for its current-year earnings has been revised 3.7% upward over the past seven days. This indicates a positive analysts’ outlook for the stock.

Nokia carries a Zacks Rank #3 (Hold), at present.

Some better-ranked stocks in the broader industry are Turtle Beach Corporation HEAR, Vocera Communications, Inc. VCRA and Acacia Communications, Inc. ACIA, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Turtle Beach delivered a trailing four-quarter positive earnings surprise of 41%, on average.

Vocera delivered a trailing four-quarter positive earnings surprise of 70%, on average. The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters.

Acacia pulled off a trailing four-quarter positive earnings surprise of 17%, on average. The company’s earnings topped the consensus estimate in three of the last four quarters.

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