Nokia (NOK) Deploys High-Speed Fiber Network in South America
Nokia Corporation NOK recently collaborated with Global Fiber Peru and a fiber telecom network operator, FYCO, to install a subaquatic optical, IP and XGS-PON fiber broadband network in a remote region of the Amazon rainforest. A subsidiary of Satelital Group, Global Fiber Peru boasts extensive coverage of fiber networks throughout Peru. In the recent venture leveraging Nokia’s robust network infrastructure, the company is delivering connectivity to 500,000 users across 400 communities in Amazon region.
Access to high-speed Internet is becoming critical for everyday life. A robust connectivity infrastructure enables residents to take advantage of advanced applications in the domain of financial services, healthcare and education. It can act as a catalyst to bring social and economic development and help local communities and businesses to grow and prosper. The remote region, located at the intersection of Peru, Colombia and Brazil, presents significant geographical challenges that complicate the delivery of consistent connectivity. Nonetheless, Nokia’s rich expertise and innovative solutions empower the local operators to mitigate these challenges.
Per the agreement, Nokia has deployed a comprehensive suite of solutions, including 830 Photonic Service Switch, 7750 service routers, 7250 interconnect routers, 7210 service access systems, network service platforms and fiber optical network terminals. Nokia’s subaquatic optical network extends through Iquitos and Santa Rosa in Peru, Tabatinga in Brazil and Letica in Columbia.
The region’s economic activity revolves around oil production, agriculture, timber extraction, tourism and border trade. By integrating Nokia’s cutting-edge technology, Global Fiber Peru is delivering the region's first FTTH (Fiber-to-the-Home) broadband services, including multi-gigabit services for enterprise users as well. This initiative will significantly bolster commercial opportunities for locals and bring isolated communities on par with the technological standards of urban areas.
In addition to this, Nokia is providing training, professional and maintenance services in collaboration with FYCO. The Finnish telecom enterprise is also upgrading fiber infrastructure in Lima, Cusco and Huancayo. Nokia has been facing significant headwinds in the Latin American market over the last several quarters. However, the recent venture with Global Fiber Peru will likely strengthen its presence and improve prospects in the region. These developments are expected to be beneficial for Nokia’s Network infrastructure portfolio.
Nokia 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. It is the only global supplier that is offering O-RAN (Radio Access Network) with commercial 5G Cloud-RAN networks.
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 products, which enables customers to upgrade to 5G quickly, is growing fast. The company currently has 319 commercial 5G deals with communications service providers globally. It has 110 live 5G networks, both public and private. The 5G portfolio is increasingly gaining traction among enterprise customers.
The stock has declined 6.5% in the past year against the industry’s growth of 51.1%
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Zacks Rank & Key Picks
Nokia currently carries a Zacks Rank #3 (Hold).
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