Nokia (NOK) Teams Up With GFiber for 50G PON Speeds Trial

Zacks Equity Research
·3-min read

Nokia Corporation NOK recently collaborated with Google Fiber (“GFiber”), a subsidiary of Alphabet Inc. GOOGL, to unleash next-generation broadband connectivity. The two companies have successfully conducted a live network demonstration of 50Gb/s broadband speed over GFiber's existing fiber network, achieving a groundbreaking 50G PON (Passive Optical Network) milestone in the United States.

Based in Mountain View, CA, Alphabet is a leading tech company, evolving from a search-engine provider to cloud computing, ad-based video and music streaming, autonomous vehicles, healthcare providers and others. The tech giant’s unit GFiber caters to both domestic and business clients, providing Google Fiber and Google Fiber Webpass Internet services across the United States.

The 50G PON trial is based on the success of  25G PON deployment between Nokia and GFiber Labs, showcasing the flexibility and scalability of Nokia's Lightspan MF fiber access platform. By leveraging this platform, operators can effortlessly upgrade their fiber networks and meet the rising demand for faster and more secure connectivity.

Fiber technology has become increasingly crucial in connecting everything to high-speed Internet services, with operators using it to generate new opportunities with 25G PON services across the globe.

Nokia's Lightspan MF platform is designed to support a wide range of next-generation PON technologies such as 10G, 25G and now 50G PON. The ability to harness multiple PON options allows operators like GFiber Labs to choose the solution that best fits their specific use case and business needs, ensuring a seamless and cost-effective path to upgrade their broadband offerings.

The trial with GFiber Labs marks the second 50G PON trial that Nokia has conducted globally in the past four months, with the first one taking place with GFiber in the United States. It also solidifies Nokia's foundation as the first vendor to showcase all PON technologies (10G, 25G, and 50G) in a live fiber network, further strengthening its leadership in the XGS-PON technology market.

Nokia is gaining from the robust demand for next-generation connectivity. Higher demand witnessed in the Middle East & Africa is a plus. However, geopolitical turmoil and a challenging macroeconomic backdrop amid tough competition are concerning.

Shares of Nokia have lost 6.7% over the past year against the industry's growth of 47.4%.

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Zacks Rank & Other Stocks to Consider

Nokia currently carries a Zacks Rank #2 (Buy).

Arista Networks, Inc. ANET, sporting a Zacks Rank #1 (Strong Buy) at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 15.68% and delivered an earnings surprise of 16.07%, on average, in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.

It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. Arista is increasingly gaining market traction in 200 and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.

Motorola Solutions Inc. MSI provides services and solutions to government segments and public safety programs, along with large enterprises and wireless infrastructure services. Currently, Motorola carries a Zacks Rank #2 at present.

It delivered a trailing four-quarter average earnings surprise of 7.54% and has a long-term growth expectation of 9.47%. In the last reported quarter, Motorola delivered an earnings surprise of 11.51%.

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