Nokia Deploys 400G Core IP Network With Windstream Tie-Up

Nokia Corporation NOK recently announced collaboration with Windstream Holdings — a leading provider of network communications and managed services in the United States. The Little Rock, AR-based telco will capitalize on Nokia’s 7750 service router (SR) platform to expand capacity across its core routing network. Markedly, Windstream has completed the initial deployment of this innovative technology. Apart from providing a significant push to 5G interconnectivity, the latest partnership will substitute Windstream’s legacy core router platform with 7750 SR and aid customers with seamless connectivity solutions in the United States.

As a leading provider of advanced technology solutions, Windstream provides industry-leading unified connectivity solutions that optimizes performance and delivers adequate bandwidth to support IT transformation. Catering to nearly 18 states, the company supports residential customers, and small and medium-sized businesses with best-in-class security and entertainment services in rural areas. Equipped with a proprietary cloud core architecture, Windstream delivers broadband services via long-haul fiber network covering a distance of nearly 164,000 miles. As part of the collaboration, Windstream will leverage Nokia’s 400G-backed routers with an FP4-enabled core network for an enhanced customer experience and maximize network flexibility to address the increasing traffic demands courtesy of the COVID-19 pandemic.

The Finnish equipment vendor’s 7750 SR portfolio is an IP router platform that delivers a variety of IP services and functions for webscale, service providers and enterprise networks. Specifically designed for 5G and cloud era, it is powered with FP4 IP routing silicon, which is the only network processor to deliver augmented network capacity across any location. With unprecedented scale and functionality, the 7750 SR provides high-density Gigabit Ethernet ranging from 10G to 400G with economic licensing and universal optical connectors. The full core enhancement has already been implemented in Chicago, IL; Dallas, TX; Atlanta, GA and Ashburn; VA with New York City, NY being fifth in line. The entire deployment process is anticipated to be completed by the end of 2021. Impressively, the strategic partnership is likely to strengthen the longstanding relationship between both the companies. The collaboration highlights Nokia’s efforts to enhance network strategies for a better future.

Leveraging its industry-rich experience of developing optical technologies, Nokia is well poised to benefit from the ongoing technology cycle, given the strength of its end-to-end portfolio. This includes products and services for every part of a network, which are helping operators to enable key 5G capabilities such as network slicing, distributed cloud and industrial IoT. Accelerated strategy execution, sharpened customer focus and reduced long-term costs are expected to position the company as a global leader in the delivery of end-to-end 5G solutions. However, competitive dynamics continue to influence Nokia’s performance. It is yet to be seen whether these successful deployment can provide Nokia’s network expansion efforts a boost as it competes with the likes of Ericsson ERIC and Cisco Systems, Inc. CSCO for market share.

Nokia’s shares have returned 22.3% compared with the industry’s growth of 11.8% in the past three months. This Zacks Rank #2 (Buy) stock has a trailing four-quarter positive earnings surprise of 129.1%, on average.



Another top-ranked stock in the broader industry is Calix, Inc. CALX, sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Calix has a trailing four-quarter positive earnings surprise of 43%, on average.

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