Nokia-Siemens Drives TD-LTE Speed - Analyst Blog
20 September 2012 - 3:25AM
Zacks
Nokia Siemens Networks – a 50-50
joint venture between Nokia Corporation (NOK) and
Siemens AG (SI) achieved lightning fast TD-LTE
network speed of 1.6 Gigabits per second (Gbps).
Increased usage of smartphones and
tablets coupled with higher downloads of HD movies have stimulated
demand for data usage and faster network speed. Consequently, to
suffice the need of the data hungry customers, the telecom
companies are continuously upgrading their network services from 2G
to 3G and now to advanced 4GLTE technology, which is at present
offering a maximum data downloading speed of 1Gbps. Therefore, as
per Nokia Siemens, attaining such record speed of 1.6 Gbps will
enable customers to download an HD movie in less than 24
seconds.
Nokia’s Nokia-Siemens Networks
segment offers wireless and fixed network infrastructure and
networks service platforms in addition to professional services to
telecom operators and service providers. It develops GSM, EDGE, and
3G/WCDMA/HSPA radio access networks and cellular transmission
network solutions for mobile and fixed network operators.
In the recently concluded quarter,
Nokia-Siemens Networks segment generated revenue of $4,295 million,
down 8% year over year. However, we believe that the business
scenario for Nokia-Siemens is expected to change in the years to
come as more telecom operators start deploying TD-LTE technology in
their respective footprints. Moreover, huge availability of
4GLTE-based smartphones coupled with the launch of Aple
Inc’.s (AAPL) first 4GLTE-based iPhone 5 will further put
pressure on telecom carriers to speed up their TD-LTE commercial
launch date.
Furthermore, the world’s largest
telecom operator China Mobile Limited (CHL), which
covers nearly 75% of Chinese market, also plans to rollout TD-LTE
technology in the upcoming months and will be using Nokia-Siemens
technology, which we believe will act as a huge catalyst for growth
going forward.
According to the latest report
provided by the Global mobile Suppliers Association (GSA), out of
the total 11 TD-LTE commercially deployed by the telecom carriers,
5 are using Nokia-Siemens Networks’ equipments.
Taking all these factors into
consideration we believe that Nokia’s this particular segment will
register impressive results in the upcoming quarters.
We retain our long-term Neutral
recommendation on Nokia Corp. Currently, it has a Zacks #3 Rank,
implying a short-term Hold rating.
APPLE INC (AAPL): Free Stock Analysis Report
CHINA MOBLE-ADR (CHL): Free Stock Analysis Report
NOKIA CP-ADR A (NOK): Free Stock Analysis Report
SIEMENS AG-ADR (SI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
China Mobile (NYSE:CHL)
Historical Stock Chart
From Jun 2024 to Jul 2024
China Mobile (NYSE:CHL)
Historical Stock Chart
From Jul 2023 to Jul 2024