Zacks Investment Research | Jan 15, 2018 08:00PM ET
Nokia (HE:NOKIA) Corp. (NOK) recently entered into a five-year deal with Optus to manage its mobile network infrastructure, operations and field maintenance.
Nokia will provide network operations and software services to help the Australian telecom operator scale its network, which includes deploying robotics, artificial intelligence and extreme automation. The two companies will also work together to develop a network operations centre.
Massive deployment of high-speed wireless networks throughout the world has opened up a new market for telecom outsourcing and managed services for several telecom equipment manufacturing firms. The next-generation 4G LTE (Long-Term Evolution) wireless networks are aiming to cope with substantial demand for high-speed wireless data services and mobile video.
Telecom services providers are now typically looking at providing the converged IP-based network offering bundled solutions for triple play voice, video and data. This requires the implementation of complex network architecture. The telecom outsourcing market generally includes network implementation & maintenance, system integration & managed services, and consulting.
In order to minimize their costs, carriers try to concentrate on developing new services, implement a service-oriented business model, and marketing. The market for basic network operation is increasingly witnessing the entry of infrastructure suppliers. This creates a huge opportunity for telecom equipment manufacturers to encash. Ericsson (BS:ERICAs) AB (NASDAQ:ERIC) , Cisco Systems Inc. (NASDAQ:CSCO) , the two Chinese giants Huawei Technologies Co. Ltd., and ZTE are other major players in this field.
Moreover, Nokia, a leading wireless network infrastructure solution provider globally, has signed an agreement with T-Mobile US Inc. (NASDAQ:TMUS) and Intel Corp. (NASDAQ:INTC) on upcoming 5G network to introduce a 28 GHz outdoor 5G commercial radio system on air in Bellevue, WA. To that end, Nokia 5G commercial AirScale solution and the 5G Mobile Trial Platform from Intel was employed to conduct a data session on a 28 GHz radio in a field test environment allowing T-Mobile US to deploy its first inter-vendor 5G network.
Price Performance
In the last one year, Nokia’s shares have increased 4.88%, underperforming the Zacks Investment Research
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