Nokia Corporation NOK recently announced that it has partnered with a leading provider of communications solutions — A1 Austria — to offer its industrial-grade private wireless technology for the latter’s enterprise campus network deployments. Markedly, the services deal will enable the Finnish equipment vendor to address the accretive networking requirements of enterprise customers, while augmenting its position in the Austrian enterprise market. The latest deal complements Nokia’s commitment to implementing an advanced 5G ecosystem for its customers, especially when majority of the service providers are shifting toward automated network operations for a streamlined infrastructure.
Recognized as a primary fixed and mobile network operator in Austria, A1 Austria is the subsidiary of A1 Telekom Austria Group, which is mainly known for its breakthrough digital solutions in Central and Eastern Europe. With nearly 5.4 million mobile customers, A1 Austria has a diverse product portfolio, which includes IT services, Internet and mobile payment solutions. It is worth mentioning that Nokia and A1 Austria had previously collaborated to expand 5G mobile communications in Austria. The Austrian telco capitalized on Nokia’s cloud-native 5G core and 5G radio access technology to deliver avant-garde service over wireless networks with enhanced customer experiences.
Reinforcing the long-standing partnership, the latest three-year contract will enable A1 Austria to leverage Nokia’s best-in-class operational support while adhering to service level agreements and quality of services requirements. This will ensure seamless deployment of high-performance 4.9G/ Long-Term Evolution (LTE) 5G private wireless campus network systems in Austria. As the technology partner of A1 Austria, Nokia empowers the company with next-gen software for the installation of private LTE networks. It also benefits A1 customers with state-of-the-art digitization, automation and network slicing capabilities. Both the companies have deployed private wireless campus networks at Vienna Airport and Magna Steyr, an automotive contract manufacturer.
Currently, Nokia is focused on developing its 5G portfolio on the back of its technological prowess. The Finnish equipment vendor is building a strong scalable software business and expanding it to structurally attractive enterprise adjacencies. Nokia is well positioned to benefit from the ongoing technology cycle, given the strength of its end-to-end portfolio. Its portfolio includes products and services for every part of a network, which help operators enable key 5G capabilities, such as network slicing, distributed cloud and industrial IoT. Notably, the partnership is a strategic fit for both the companies, wherein Austrian network operators can avail the benefits of private wireless networks, which are ideal for catering to the business-critical requirements of public safety organizations and other enterprise verticals.
Nokia aims to accelerate its product roadmaps and cost competitiveness through additional 5G investments in 2020. The company is likely to benefit from expanding its business into targeted, high-growth and high-margin vertical markets to address several opportunities beyond its primary markets. Accelerated strategy execution, customer focus and reduced long-term costs are expected to position it as a global leader in the delivery of end-to-end 5G solutions. It is to be seen whether these deployments can provide a boost to Nokia’s network expansion strategies.
Nokia’s shares have gained 3.4% compared with the industry’s growth of 28.7% in the past year. This Zacks Rank #4 (Sell) stock delivered a trailing four-quarter positive earnings surprise of 37.5%, on average.
Some better-ranked stocks in the broader industry are Clearfield, Inc. CLFD, Cambium Networks Corporation CMBM and Calix, Inc. CALX, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Clearfield pulled off a trailing four-quarter positive earnings surprise of 44.3%, on average.
Cambium delivered a trailing four-quarter positive earnings surprise of 137.8%, on average.
Calix delivered a trailing four-quarter positive earnings surprise of 72.2%, on average.
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