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Nokia (NOK), Telefonica Unite to Boost Spain's Private Network

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Nokia Corporation (NOK - Free Report) recently announced a three-year agreement with Telefonica, S.A (TEF - Free Report) , to develop the private 5G network market in Spain. The collaborative effort is expected to advance telecommunications infrastructure in the European country and expand market opportunities in the private network sector.

Private networks, which offer dedicated connectivity to specific users or organizations, are gaining recognition due to their superior reliability, security, and customization capabilities compared to traditional public networks.

Under this agreement, Nokia will deploy 100 Digital Automation Cloud (DAC), Modular Private Wireless (MPW) and MX Industrial Edge (MXIE) solutions. These deployments will likely enable its industrial digitalization platform to help industries such as manufacturing, healthcare and logistics meet critical needs. It further aims to simplify digital transformation within these industries by delivering a secure, reliable and high-performing wireless infrastructure, with on-premises computing capabilities for tapping into real-time OT data. This advancement is expected to improve productivity, worker safety and sustainability in the Spain.

The collaboration between the two companies leverages Nokia's expertise in network infrastructure, along with Telefonica's extensive customer base and network footprint.  Together, both companies aim to focus on enhancing the use of advanced 5G network features across Telefonica Mobile Spain and Telefonica IoT & Big Data Tech Spain. The partnership will likely boost Industry 4.0 in the local market, enabling industries to become more data-driven.

Nokia currently has 319 commercial 5G deals with communications service providers globally. The 5G portfolio is increasingly gaining traction among enterprise customers. The company’s expertise in mission-critical networks is well-established, with deployments of more than 2,600 leading enterprise customers in the transportation, energy, large enterprise, manufacturing, webscale and public sector segments worldwide. It has also extended its expertise to more than 730 private wireless customers worldwide.

This collaboration between Nokia and Telefonica represents a significant step forward in Spain’s digital transformation journey. The integration of Nokia’s advanced technologies and Telefonica’s extensive network infrastructure will likely help the Spanish organizations gain enhanced connectivity, improved operational efficiency and increased competitiveness on the global stage.

Shares of Nokia have lost 8.2% over the past year against the industry’s growth of 40.4%.

Zacks Investment Research
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Zacks Rank and Key Picks

Nokia currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the industry have been discussed below.

Arista Networks, Inc. (ANET - Free Report) , sporting a Zacks Rank of 1 (Strong Buy) at present, supplies products to a prestigious set of customers, including Fortune 500 global companies in markets such as cloud titans, enterprises, financials and specialty cloud service providers. You can see the complete list of today’s Zacks #1 Rank stocks here.

Arista delivered a trailing four-quarter average earnings surprise of 15.39%. It has a long-term growth expectation of 16.07%.

Motorola Solutions, Inc. (MSI - Free Report) provides services and solutions to government segments and public safety programs, along with large enterprises and wireless infrastructure services. Currently, Motorola holds a Zacks Rank #2 (Buy).

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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