Nokia-Siemens Network ("NSN") a 50-50 joint venture between Nokia Corporation ( NOK ) and Siemens AG ( SI ) was selected by M1, Singapore's second-largest telecom carrier to expand the latter's 3G network. This is second network upgrade deal for NSN within a fortnight after the company was selected by TIM Participacoes SA ( TSU ) to upgrade its existing 2G and 3G networks with a LTE (long Term Evolution) network.
As per the agreement, NSN will implement its award-winning Flexi Multiradio base station, which is a radio access network (RAN) used for 3G and LTE network, along with the Multicontroller RNC and the Liquid Radio software. NSN's Multicontroller RNC (radio network controller) provides operatorswith the flexibility to adjust and reconfigure network according to changes in the subscriber's usage pattern.
On the other hand, the Liquid Radio software adapts to the capacity of the carrier's network and helps it manage unpredictable data traffic demand. Within the Liquid core portfolio, NSN will provide M1 with ATCA-based open Mobile Switching Centre Server (MSS) and Open Media Gateway (MGW), which will allow M1 to improve the operational efficiency of its voice network.
Additionally, NSN will also provide M1 with a Subscriber Data Management (SDM) system that will be used as a centralized database storage platform. NSN will also provide a lot of support services like network implementation, optimization and hardware/software maintenance.
Smartphones have been dominating the telecom market for the last couple of years as users tend to use these devices more for data sharing than voice services. Higher proliferation of smartphones has induced customers to download more content via these superfast gadgets.
Telecom carriers around the world are upgrading their network to support the huge data transfer demand. NSN has received several radio contracts worldwide, which reveals the upgrade activity that is currently underway. We believe that this deal strengthens the growing acceptance of NSN's radio products, which has received increased market traction in different parts of the world.
Currently, Nokia carries a Zacks Rank #3 (Hold). Among the other companies in the same industry where Nokia operates, Interdigital Inc. ( IDCC ), with a Zacks Rank #2 (Buy), is a better option for the investors.