Yahoo Finance Nokia (NOK) Solution to Boost DOCOMO's 5G Network Upgradation
Nokia Corporation NOK recently announced that DOCOMO selected its IP routing solutions and Network Services Platform (NSP) to enhance the latter’s nationwide network capabilities. The FP5 silicon-integrated 7750 service routers from Nokia will ensure better performance, enhance capacity by about three times and reduce power consumption by 75%, enabling DOCOMO to meet rising bandwidth requirements.
The need for network connectivity differs according to customers' data consumption patterns as video streaming, voice calls and vehicle navigation have different bandwidth and latency requirements. Network slicing addresses this issue and allows bandwidth optimization. Multiple virtual networks can be created through network slicing based on a common physical network.
DOCOMO is looking to incorporate these capabilities by utilizing Nokia’s NSP for network slicing of 5G services. This will enable DOCOMO to configure networks, customize bandwidth characteristics and provide differentiated network service according to customers' needs. It will also ensure resource efficiency and greater scalability and automate the process of creation and deployment of network slices. The DOCOMO deal strengthens Nokia’s market position as a leading communication equipment provider in the world.
Nokia enables its customers to move away from an economy-of-scale network operating model to demand-driven operations through easy programmability and flexible automation to support dynamic operations, reduce complexity and improve efficiency. The company seeks to expand its business into targeted, high-growth and high-margin vertical markets to address growth opportunities beyond its traditional primary markets. It is well-positioned for the ongoing technology cycle, given the strength of its end-to-end portfolio. The company’s deal win rate is encouraging, with notable successes in the key 5G markets of the United States and China. Its installed base of high-capacity AirScale products, which enable customers to upgrade to 5G quickly, is growing fast.
It has made significant progress on its three-phased journey of value creation. The company’s strategy includes Reset, Accelerate and Scale. Its focus on capital allocation and technology leadership is expected to help it grow profitably. Nokia is on track to achieve sustainable, profitable growth and technology leadership. The company is witnessing healthy momentum in its focus areas of software and enterprise, which augurs well for the licensing business. It is poised to benefit from copper and fiber deployments of passive optical networking.
The stock has declined 15.3% in the past year compared with the industry’s fall of 20.6%.
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Nokia currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ubiquiti, Inc. UI, carrying a Zacks Rank #2 (Buy), delivered an earnings surprise of 6.90% in the last reported quarter. Earnings estimates for UI for the current year stand at $7.31 per share. Ubiquiti and its subsidiaries offer a comprehensive portfolio of networking products and solutions for service providers and enterprises. Its service-provider product platforms offer carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems and routing, while enterprise product platforms provide wireless local area network (WLAN) infrastructure, video surveillance products and machine-to-machine communication components.
The company’s excellent global business model, which is flexible and adaptable to evolving changes in markets, helps it to beat challenges and maximize growth. Its operating model is backed by a rapidly growing and highly engaged community of service providers, distributors, value-added resellers, systems integrators and corporate IT professionals (referred to as the Ubiquiti Community).
Arista Networks, Inc. ANET, sporting a Zacks Rank #1, delivered an earnings surprise of 14.17%, on average, in the trailing four quarters. Earnings estimates for ANET for the current year stand at $5.79 per share. Arista provides cloud networking solutions for data centers and cloud computing environments. The company offers 10/25/40/50/100 Gigabit Ethernet switches and routers optimized for next-generation data center networks.
It continues to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. It is well-poised for growth in data-driven cloud networking business with proactive platforms and predictive operations. Arista has introduced network observability software, DANZ Monitoring Fabric (DMF), on its switching platforms for enterprise-wide traffic visibility and contextual insights.
Juniper Networks, Inc. JNPR, carrying a Zacks Rank #2, delivered an earnings surprise of 1.55%, on average, in the trailing four quarters. It is witnessing strong momentum across its core industry verticals and is confident of its long-term prospects. Investments in customer solutions and sales organizations have enabled the company to capitalize on the solid demand across end markets.
Juniper is a leading provider of networking solutions and communication devices. The company develops, designs and sells products that help build a network infrastructure for services and applications based on a single Internet protocol network worldwide. The company caters to the networking needs of enterprises, public sector organizations and service providers across the globe.
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