Nokia Corporation (NOK – Free Report) announced that it has inked a deal with A1 — a leading Austrian fixed and mobile network operator — to expand next-generation 5G mobile communications in the European country. Financial terms of the contract were not disclosed.
This latest agreement strengthens the long-standing partnership between A1 and the Finnish telecom equipment supplier, which has seen the successful expansion of 3G, 4G/LTE mobile networks and roll-out of Austria’s largest fiber-optic network. Currently, Nokia boasts a major position in mobile and fixed network infrastructure, with the industry’s most comprehensive, end-to-end product portfolio.
Per the deal, Nokia will utilize its 5G radio access and cloud-native 5G core technology for allowing A1 to provide seamless service and excellent user experience over wireless, fixed or converged networks. Markedly, the innovative power of A1 and Nokia in 5G has already been demonstrated. The deal will help mobile broadband subscribers and industries to capitalize on 5G technology, Internet of Things (IoT) and the fourth industrial revolution.
Nokia’s 5G portfolio is likely to provide A1’s subscribers with ultra-high bandwidth and low latency services alongside new applications in areas like virtual reality, augmented reality and artificial intelligence. Businesses will also gain from various IoT vertical use cases enabled by 5G as it will help enhance operational efficiency and user experiences while providing new revenue streams.
Together with A1, Nokia has exhibited the capabilities of 5G and its unique end-to-end portfolio on a number of occasions. A1 has presented 5G applications for industry and implemented Austria’s first campus network for Vienna Airport. Also, in Gmünd — the first 5G city in Austria — data transfers on the A1 Network were carried out in January 2019.
In addition, Nokia’s deal win rate is encouraging with remarkable successes in the key 5G markets of the United States and China. It is continuously expanding business into targeted, high-growth and high-margin vertical markets to address growth opportunities beyond its primary markets. Rollouts of next-generation 5G networks are expected to boost market conditions considerably in 2019 and beyond.
To stoke its market position, Nokia helps 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.
Furthermore, Nokia continues executing its strategy with particularly good progress in Nokia Software and expansion to select enterprise vertical markets. The technology company is also working to accelerate strategy execution, sharpen customer focus and reduce long-term costs. This, in turn, should help the company position itself for long-term 5G leadership and reaffirm commitment to 2020 non-IFRS operating margin between 12% and 16% and non-IFRS EPS in the range of €0.37-€0.42.
Benefiting from expanding technological collaborations with industry frontrunners, shares of this Zacks Rank #4 (Sell) company have gained 3.1% on an average against the industry’s 12% decline in the past six months.
Better-ranked stocks in the industry include Ubiquiti Networks, Inc. (UBNT – Free Report) , Harris Corporation (HRS – Free Report) and Motorola Solutions, Inc. (MSI – Free Report) . While Ubiquiti sports a Zacks Rank #1 (Strong Buy), Harris and Motorola carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ubiquiti has a long-term earnings growth expectation of 20.4%.
Harris has a long-term earnings growth expectation of 8%.
Motorola has a long-term earnings growth expectation of 8%.
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