Nokia Corporation NOK recently took a giant step forward in global 5G network deployments by achieving 100% digitization of the related processes. The move is likely to accelerate time-to-market for the complex procedures involved in 5G deployment, thereby generating healthy ROI for the operators.
To date, carriers mostly had to rely on a combination of traditional methods, including both paper-based and digital documentation for network deployments. These involved the risk of errors and human inefficiencies, which Nokia is aiming to eliminate. The latest move, is likely to expediate the process and be cost-effective, enabling carriers to match the evolving needs of customers at a faster pace. Notably, this has reduced customer site visits by 30%, with 30% improvement each in installation quality and back office transaction along with 25% improvement in cycle times.
The success of 5G hinges on substantial investments to upgrade infrastructure in the core fiber backhaul network to support anticipated growth in data services. With operators moving toward converged or multi-use network structures, combining voice, video and data communications into a single network, the industry is increasingly developing solutions to support wireline and wireless network convergence. Although these investments will eventually help minimize service delivery costs to support broadband competition, rural coverage and wireless densification, short-term profitability has largely been compromised.
Nokia aims to tide over these operational difficulties by enabling a simpler, faster, transparent and efficient delivery of services through digitization of 5G network deployment. In order to strengthen its leading position in the market, it facilitates 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 seeks to expand its business into targeted, high-growth and high-margin vertical markets to address growth opportunities beyond its traditional primary markets.
Moving forward, Nokia 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, which enables customers to quickly upgrade to 5G, is growing fast. 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 IoT.
The company currently has 83 commercial 5G deals. Its 5G technology has been contracted by all four nationwide operators in the United States, all three in South Korea and all three in Japan. Solid momentum is a reflection of its sustained leadership in cellular technology R&D and standardization. Some of its prominent customers are AT&T Inc. T, Verizon Communications Inc. VZ, T-Mobile US Inc. TMUS, Korea Telecom, NTT DOCOMO, O2, SK Telecom, SoftBank, STC, Vodafone Italy and Zain Saudi.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.3% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ATT Inc. (T) : Free Stock Analysis Report
Verizon Communications Inc. (VZ) : Free Stock Analysis Report
Nokia Corporation (NOK) : Free Stock Analysis Report
TMobile US, Inc. (TMUS) : Free Stock Analysis Report
To read this article on Zacks.com click here.