Nokia (NYSE:NOK) Corporation NOK has joined forces with Canada’s crown-owned telecommunications firm, SaskTel, to install its XGS-PON (Passive Optical Network) technology in Saskatchewan. XGS-PON is a modernized standard for PON that can support 10 Gbps symmetrical data transfer.
Markedly, the deployment will facilitate SaskTel’s business customers, based across the Canadian province, with gigabit symmetrical services. This, in turn, will enable the telecommunications company to support high-bandwidth consumer and business applications amid an evolving broadband landscape.
Given the fact that Nokia has been effectively handling its resources to deliver streamlined ultra-broadband service, the latest move will reinforce its broad portfolio of fixed network solutions to address the proliferating demands of digitization among customers. Markedly, the Finnish equipment supplier is focused on its strategy that hinges on four priorities.
The first priority is to lead in high-performance end-to-end networks with its communications service provider customers. The second one is based on its relentless pursuit to expand network sales to select vertical markets. Building a strong standalone software business is the third priority. The fourth pillar aims to create new business and licensing opportunities in the consumer ecosystem.
Notably, Nokia’s next-generation PON is preferred by several broadband operators across the globe for upgrading fiber networks. The offering provides an opportunity to not only improve the return on investment with higher revenues but also bolsters 5G deployments with premium gigabit and multi-gigabit services. This cost-effective solution converges residential, business broadband and mobile transport on a single infrastructure for smooth operations, making it an ideal deployment option.
Per the collaboration, SaskTel will capitalize on the benefits of the XGS-PON technology by deploying it on Nokia’s 7360 Optical Line Terminals and XS-250 XGS Optical Network Terminals, thereby paving a seamless transition to 25G PON and Software-Defined Networking. The deployment will aid households with uninterrupted HD video streaming, multi-player online gaming and remote learning, among other utilities. Moreover, the alliance will enable SaskTel to support its Optimum In-home Wi-Fi service, along with maxTV and maxTV Stream video products, driven by superior broadband speeds. The initial deployment process will commence in the cities of Saskatoon and Regina in Canada.
Moving forward, Nokia intends to accelerate strategy execution, sharpen customer focus and reduce long-term costs. It is on track to deliver on its three-phased plan to achieve sustainable, profitable growth and technology leadership. With 165 commercial 5G deals and 65 live 5G operator networks, the company is well positioned for the ongoing technology cycle given the strength of its end-to-end portfolio. Moreover, it plans to expand its business into high-growth vertical markets to address growth opportunities.
The Zacks Rank #2 (Buy) stock has gained 27.3% in the past year compared with the industry’s growth of 43.3%.
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Some other top-ranked stocks in the broader industry are Cambium Networks (NASDAQ:CMBM) Corporation CMBM, Aviat Networks (NASDAQ:AVNW), Inc. AVNW and Clearfield (NASDAQ:CLFD), Inc. CLFD. While Cambium sports a Zacks Rank #1 (Strong Buy), Aviat Networks and Clearfield carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cambium delivered a trailing four-quarter earnings surprise of 46.5%, on average.
Aviat Networks delivered a trailing four-quarter earnings surprise of 57.3%, on average.
Clearfield delivered a trailing four-quarter earnings surprise of 79.8%, on average.
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