In a concerted effort to address the upsurge in data demand amid the ongoing COVID-19 pandemic, Nokia Corporation NOK recently announced its collaboration with mobile network operator United States Cellular Corporation USM. With millions of people staying indoors, the latest move underscores the Finland-based equipment maker’s commitment to deploy its avant-garde fiber optic and wireless networks to help users avert exposure from the deadly virus.
Last month, U.S. Cellular secured the Federal Communications Commission’s (FCC) Special Temporary Authority to leverage additional spectrum to meet increased customer demand for mobile broadband during the coronavirus pandemic. Under this scheme, the network operator will be able to operate on a 60-day temporary spectrum, which is licensed to Advantage Spectrum in the AWS-3 Band. Nokia will be supporting U.S. Cellular with its Airscale Radio Access Network to shore up connectivity at 250 cell sites for customers dwelling in California, Wisconsin, Oregon and Washington.
Apart from U.S. Cellular, tech giants like Verizon Communications Inc. VZ, T-Mobile US, Inc. TMUS and AT&T have also been granted Special Temporary Authority to ensure that U.S. citizens to enjoy seamless connectivity amid this pandemic. Of late, the FCC has been essentially helping Americans to work from home and connect remotely with health care professionals during this hour of crisis. To date, 185 broadband and phone service providers have joined the “Keep Americans Connected” pledge to help people stay connected for the next 60 days. The regulatory authority has also urged the operators to waive any late fees incurred by residential or small business customers and open Wi-Fi hotspots to anyone who needs them in these dire circumstances.
With a significant rise in voice and data traffic, cyber racketeers are infecting numerous mobile devices with malware applications. In order to curb these illegal practices, Nokia’s much-acclaimed Threat Intelligence Lab aims to evaluate these potential cyber threats as well as ensure timely response for its accurate detection.
In response to increased threat of malware attacks, U.S. Cellular also stated that it will be leveraging Nokia’s NetGuard Endpoint Security solution to monitor enterprise and consumer network traffic for any malware threats. These threats are mainly directed at aggravating the fear surrounding COVID-19 through various corona-related phishing campaigns. With the help of this application, U.S. Cellular will be able to detect the devices that are getting affected with these malwares and identify the specific type of malware application so that the carrier can undertake precautionary measures to protect its customers.
Currently, Nokia is expanding its business into targeted, high-growth and high-margin vertical markets to address several opportunities beyond its primary markets. It had announced plans to accelerate strategy execution, sharpen customer focus and reduce long-term costs. This, in turn, should help the company position itself as a global leader in the delivery of end-to-end 5G solutions. However, macroeconomic dynamics and competitive pressure from arch-rivals, Ericsson and Huawei, are likely to create near-term pressure for the Finland-based vendor.
Nokia’s shares have plunged 42.1% compared with the industry’s decline of 22.2% in the past year. The Zacks Rank #3 (Hold) stock topped earnings estimates twice in the trailing four quarters but missed the same in the remaining quarters. It has a trailing four-quarter positive earnings surprise of 87.5%, on average. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
