Nokia to Help PGE Systemy Digitize Electrical Grid in Poland
Nokia Corp. NOK today communicated that its 5G-enabled, private wireless solution has been selected by PGE Systemy, a major Polish energy sector company. This follows the successful trial of a 450 MHz proof of concept (PoC) network in operation since April 2019. Financial terms of the deal were not disclosed by the parties.
Nokia deployed more than 1,300 mission-critical networks with leading customers in the transport, energy, large enterprise, manufacturing, webscale and public sector segments worldwide. The Finnish company is committed toward transforming Poland’s communications infrastructure with more than 6,000 employees working in its R&D centers, developing state-of-the-art technologies including 4.9G and 5G.
The development marks an important first step in assessing the use of the 450 MHz band to support wide-area operations of energy distribution system operators across the country. The Polish Energy Ministry selected PGE Systemy to operate a 4.9G private wireless network on the 450 MHz band for critical and operational communications in its power grid.
PGE Systemy will use the PoC infrastructure to further develop its concept of a nationwide communications network. The final private wireless network will likely support 15,000 to 20,000 private radio users over LTE/4.9G as well as wireless connectivity for up to 14 million smart meters and 35,000 supervisory control and data acquisition connections.
Nokia has pioneered the private wireless space with many verticals and currently has more than 150 large enterprise customers deploying it globally. Its Bell Labs Future X for industries architecture provides a framework for enterprises to accelerate their automation journey to Industry 4.0. The company’s PoC demonstrated that it will meet PGE Systemy’s needs in terms of coverage, service quality, resilience and long-term availability.
Prominent enterprises across industries are leveraging Nokia’s expertise in building some of the most advanced IP, optical and wireless networks. The company stands to benefit by offering further support for the digitization of the Polish electrical grid by PGE Systemy. Nokia’s network is known to be the top-quality of cellular systems for mission-critical and machine-to-machine communications in advanced applications.
Nokia is focused on its strategy that hinges on four priorities. The first priority is to lead in high-performance end-to-end networks with its communications service provider customers. The second priority is based on its relentless pursuit to expand network sales to select vertical markets. Building a strong standalone software business is the third strategic priority. The fourth pillar aims to create new business and licensing opportunities in the consumer ecosystem.
Nokia has a long-term earnings growth expectation of 18.9% compared with 15.6% of the industry. The stock has lost 35.5% compared with the industry’s decline of 11.7% in the past six months.
The company topped earnings estimates twice in the last four quarters and missed the same in the remaining two quarters. It has a trailing four-quarter positive earnings surprise of 87.5%, on average. Shares are currently trading with a forward P/E of 12.06X.
Nokia currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the industry include Viasat, Inc. VSAT, InterDigital, Inc. IDCC and Ubiquiti Inc. UI, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Viasat has a trailing four-quarter positive earnings surprise of 402%, on average.
InterDigital has a trailing four-quarter positive earnings surprise of 62%, on average. The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters.
Ubiquiti has a trailing four-quarter positive earnings surprise of 5.7%, on average. The company’s earnings surpassed the consensus estimate in two of the last four quarters.
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