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Nokia (NOK) to Power Indosat's 5G Network Launch in Indonesia

Nokia Corporation NOK recently inked a deal with Indosat Ooredoo to launch the carrier’s 5G services in Surabaya, a port city in Indonesia. The deal will enable Indosat to offer commercial 5G services across the region and work collaboratively to deploy premium digital services in the near future.

Per the deal, the telecommunications equipment manufacturer will provide 5G RAN solutions from its leading AirScale portfolio for extensive indoor and outdoor coverage. The AirScale Radio Access products deliver low-latency, high-capacity mobile connectivity with a low cost of ownership and can be easily upgraded through a software update, thereby reducing network complexity. Nokia will also offer dynamic spectrum sharing (DSS) technology to Indosat that synchronizes the spectrum usage between 4G and 5G, and helps network operators to reuse lower-frequency 4G radio networks for 5G deployment. The DSS strategy enables the rollout of both 4G and 5G in the same band and proactively allocates spectrum resources between them, based on user demand.

By unlocking network efficiencies with common operability, software delivery, and increased hardware sharing, Nokia has been able to reduce the total cost of ownership for mobile operators. The company is well-positioned for the ongoing technology cycle given the strength of its end-to-end portfolio. Its installed base of high-capacity AirScale product is growing fast. Deploying its industry-leading software, 5G RAN and IP-Backhaul solutions for this project, Nokia will help develop a reference design and build use cases on standards-based solutions with local partners Sepuluh Nopember Institute of Technology and the University of Oulu. This, in turn, will likely help it tap the enormous potential of 5G to drive innovation in Indonesia.

The company is driving the transition of global enterprises into smart virtual networks by creating a single network for all services, converging mobile and fixed broadband, IP routing and optical networks with the software and services to manage them. Leveraging state-of-the-art technology, Nokia is transforming the way people and things communicate and connect with each other. These include seamless transition to 5G technology, ultra-broadband access, IP and Software Defined Networking, cloud applications, and Internet of Things.

The company facilitates its customers to move away from an economy-of-scale network operating model to demand-driven operations by offering easy programmability and flexible automation needed to support dynamic operations, reduce complexity, and improve efficiency. Nokia remains focused on building a robust scalable software business and expanding it to structurally attractive enterprise adjacencies. It has inked more than 183 commercial 5G contracts across the globe. The company’s end-to-end portfolio includes products and services for every part of a network, which are helping operators to enable key 5G capabilities, such as network slicing, distributed cloud, and industrial IoT. Accelerated strategy execution, sharpened customer focus, and reduced long-term costs are expected to position the company as a global leader in the delivery of end-to-end 5G solutions.

The stock has gained 37.5% in the past year compared with the industry’s rally of 29.2%.

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We remain impressed with the inherent growth potential of this Zacks Rank #2 (Buy) stock. Some other top-ranked stocks in the industry are Clearfield, Inc. CLFD, sporting a Zacks Rank #1 (Strong Buy), and InterDigital, Inc. IDCC and Qualcomm Incorporated QCOM, carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Clearfield delivered a trailing four-quarter earnings surprise of 49%, on average.

InterDigital has a long-term earnings growth expectation of 15%. It delivered an earnings surprise of 536%, on average, in the trailing four quarters.

Qualcomm has a long-term earnings growth expectation of 21%. It delivered an earnings surprise of 13.5%, on average, in the trailing four quarters.

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