Nokia Deploys DSR & mMIMO to Improve Vodafone Idea's Network
Nokia Corporation NOK completed the first phase of the world’s largest deployment of Dynamic Spectrum Refarming (DSR) in India together with Vodafone Idea. Also, the companies have implemented the country’s largest massive Multiple Input Multiple Output (mMIMO) project. The Finland-based telecom gear maker’s shares inched up 1.4% in Wednesday’s trading, closing at $4.37.
Nokia’s DSR solution, which has been deployed across major cities in India, will help Vodafone Idea make the most of its spectrum assets. The solution includes Nokia’s module AirScale BaseBand, which enables service providers to address increasing mobile broadband requirements of subscribers. It also enables operators to share spectrum across different technologies and automatically change spectrum allocation.
Nokia has deployed more than 5,500 TD-LTE mMIMO cells in the 2500 Mhz spectrum band in eight service areas — Mumbai, Kolkata, Gujarat, Haryana, Uttar Pradesh (East), Uttar Pradesh (West), Rest of Bengal and Andhra Pradesh. This will help Vodafone Idea improve network coverage, reliability and speed. Nokia’s mMIMO solution supports exponential traffic growth and prepares the networks for 5G technology.
Nokia has been developing its 5G portfolio, strengthening AirScale and advancing the capabilities of its ReefShark chipset. The company is working with multiple partners to support its ReefShark family of chipsets, which are used in many base station elements. In Mobile Access, it expects the improvement to be driven by increasing shipments of ‘5G Powered by ReefShark’ portfolio and product cost reductions.
The company’s end-to-end 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. It facilitates customers to move from an economy-of-scale network operating model to demand-driven operations by offering easy programmability and automation. Nokia is witnessing healthy underlying momentum in its focus areas of software and enterprise, which augurs well for its licensing business.
At the same time, Nokia seeks to expand its business into targeted, high-growth and high-margin vertical markets to address opportunities beyond its primary markets. It had earlier announced plans to accelerate strategy execution, sharpen customer focus and reduce long-term costs. This, in turn, is expected to position the company as a global leader in the delivery of end-to-end 5G solutions.
Nokia is focused on its strategy that hinges on four priorities. The first one is to lead in high-performance end-to-end networks with its communications service provider customers. The second priority is based on its pursuit to expand network sales to select vertical markets. Building a strong standalone software business is the third strategic priority. The fourth pillar aims to create new business and licensing opportunities in the consumer ecosystem.
Nokia has a long-term earnings growth expectation of 13.3% compared with 13.9% of the industry. The stock has gained 25.5% against the industry’s decline of 2.4% in the past six months.
Nokia currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader industry are Turtle Beach Corporation HEAR, Ooma, Inc. OOMA and Acacia Communications, Inc. ACIA, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Turtle Beach has a trailing four-quarter positive earnings surprise of 46.4%, on average.
Ooma has a trailing four-quarter positive earnings surprise of 228.2%, on average.
Acacia has a trailing four-quarter positive earnings surprise of 17.7%, on average. The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters.
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