Nokia's Service Aggregation Router Gets FirstNet Ready Tag

Nokia Corporation NOK recently announced that its 7705 SAR-Hmc wireless service aggregation router has been certified for use on FirstNet. Created in a public-private partnership between the federal government and AT&T T, FirstNet is a nationwide, high-speed broadband communications platform dedicated to ensure public safety. It supports communications for more than 13,000 public safety agencies and organizations across the United States.

Nokia’s 7705 service aggregation router (SAR) delivers Time-division multiplexing (TDM) and IP/MPLS (Multi-protocol Label Switching) services, which makes it perfect for enterprises and governments. As part of Nokia’s Service Router product portfolio, the device runs the Nokia Service Router Operating System. It is managed by the Nokia Network Services Platform for end-to-end application delivery and management.

Importantly, FirstNet devices and modules go through an extensive review so first responders can be certain that Nokia’s 7705 SAR-Hmc meets the highest standards for reliability, security and performance. The 7705 has been designed for smart grid modernization and is proven in the utility market. In general, the device supports multiple services across a range of transport media including microwave, optical, copper and wireless. Its interface enables smooth migration from circuit-based to IP/MPLS-based transport to reduce operating costs and add new services.

With its FirstNet Ready router, Nokia now aims to provide secure wireless access for first responders anywhere in the country. 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 the licensing business.

The Finland-based telecom equipment maker is positioned to benefit from copper and fiber deployments of passive optical networking. The company also 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 added 21.2% in the past six months compared with 26.9% growth of the industry. The company has a long-term earnings growth expectation of 15.6% compared with the industry’s 15.1%.

Currently, Nokia carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader industry are Plantronics, Inc. PLT and Acacia Communications, Inc. ACIA, both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Plantronics has a trailing four-quarter earnings surprise of 540%, on average. The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters.

Acacia has a trailing four-quarter 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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