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NOK Boosts Openreach Network With Advanced Solutions: Stock to Gain?

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Nokia Corporation (NOK - Free Report) recently announced that it has been selected by Openreach to construct its One Network Platform, an open-access fiber network aimed at connecting millions of homes and businesses across the United Kingdom. With this collaboration, Openreach plans to grow its connected premises from 17 million to 25 million by the end of 2026, addressing the increasing need for faster Internet services nationwide.

Digging Deep Into NOK-Openreach Deal

Openreach’s wholesale broadband network connects around 300 communication service providers to deliver ultrafast fiber services to urban areas, towns, villages, and even remote rural locations. Integrating Nokia’s state-of-the-art Altiplano and Network Services Platform, network controllers will likely allow Openreach to create a large-scale, multi-service open-access network. The modular data center design architecture of the solution is expected to reduce power and space requirements at Ethernet access exchange sites by more than 50%. Additionally, the design is adaptable to varying population densities, enabling communication providers to easily connect end users to the Openreach fiber network. 

With Nokia’s network controllers, Openreach will also enhance its ability to automate service delivery across multiple broadband technologies, including Point-to-Point, GPON, and XGS PON. The platform’s intent-based management system simplifies network operations, reducing operational complexity by up to 85%. It also offers valuable real-time performance data through streaming telemetry, which provides actionable insights into network behavior, optimizing efficiency and reliability.

In addition to the network controllers, Nokia will deploy its 7250 IXR family of routers. 

By enhancing automation and improving network visibility, Openreach will benefit from faster fault detection, reduced operational costs, and increased network efficiency. The One Network Platform’s ability to scale and adapt to evolving broadband needs will likely provide Openreach with a future-proof solution, improving service reliability and simplifying management for both service providers and end users.

Does NOK Stand to Gain From the Deployment?

With the emergence of the smartphone market and subsequent usage of mobile broadband, user demand for coverage speed and quality has increased in recent times. Further, to maintain superior performance as traffic increases, there is also a continuous need for network tuning and optimization. Nokia’s expertise in mission-critical networks is well-established, with deployments across more than 2,600 leading enterprise customers in the transportation, energy, manufacturing, webscale and public sector segments worldwide.

This collaboration with Openreach is likely to propel the stock with incremental revenue generation and inducement of similar deals from other carriers in the future. The partnership is also expected to strengthen Nokia’s position as a leading telecommunications equipment provider in the region.

NOK’s Stock Price Performance

Shares of Nokia have gained 28.5% over the past year compared with the industry's growth of 27.3%.

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NOK’s Zacks Rank and Key Picks

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

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

Ubiquiti Inc. (UI - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The company’s highly flexible global business model remains apt to adapt to changing market dynamics, enabling it to overcome challenges while maximizing growth. 

UI’s effective management of its strong global network of more than 100 distributors and master resellers improved the company’s visibility for future demand and inventory management techniques. In the last reported quarter, Ubiquiti delivered an earnings surprise of 20.9%.

Workday Inc. (WDAY - Free Report) carries a Zacks Rank #2 (Buy) at present. In the last reported quarter, it delivered an earnings surprise of 7.36%. 

WDAY is a foremost supplier of enterprise-level software solutions for human resource and finance management. WDAY changes the way analytical insights and contributions to decision-making are made available to businesses by integrating finance and human resources as one system on the cloud. 

InterDigital, Inc. (IDCC - Free Report) sports a Zacks Rank of 1 at present. It has a long-term growth expectation of 17.44%.

IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a whole range of advanced technology solutions for use in digital cellular, as well as wireless 3G, 4G, and IEEE 802-related products and networks.


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