Nokia (NOK) has teamed up with Indonesian telecommunications provider Indosat Ooredoo to launch commercial 5G services in the city of Surabaya in Indonesia and deliver outstanding 5G experiences to subscribers in the country.
Shares of the multinational telecommunications giant have gained 36% over the past year. (See Nokia stock charts on TipRanks)
Per the terms of the deal, Nokia will supply equipment from its latest ReefShark-based AirScale product range for both indoor and outdoor coverage. The integration will lead to higher speeds and greater mobile coverage, along with lower costs for Indosat Ooredoo’s customers.
Nokia will also provide its dynamic spectrum sharing (DSS) solution, enabling Indosat Ooredoo to use its 4G networks spectrum for 5G services.
Furthermore, Nokia and Indosat Ooredoo, along with various partnering universities, plan to open the Nokia 5G Experience Centre in Surabaya to provide a platform for the development of innovative new 5G use cases by tapping local digital talent.
President of Mobile Networks at Nokia, Tommi Uitto, commented, “We are excited to launch commercial 5G services in Indonesia with Indosat Ooredoo as its trusted partner. Our AirScale portfolio will deliver best-in-class services to its subscribers and I look forward to working hand in hand with them on this project moving forward. The opening of the Nokia 5G Experience Center will also provide a platform to drive innovation in the country.”
Following the company’s quarterly results in August, J.P. Morgan analyst Sandeep Deshpande maintained a Buy rating on the stock.
Deshpande was impressed with the margin expansion witnessed during the second quarter as gross margins jumped to 38.9% sequentially.
Consensus among analysts is a Strong Buy based on 9 Buys and 3 Holds. The average Nokia price target of $7.13 implies upside potential of 26.9% from current levels.
NOK scores a 9 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.