Nokia Wins Network Security and Upgrade Contract from T-Mobile

T-Mobile Netherlands has signed Nokia (NOK) as a strategic partner. Nokia will secure T-Mobile’s network against cyber threats and also help accelerate the telecom operator’s digital transformation. 

T-Mobile Netherlands is the Dutch sister company of T-Mobile US (TMUS). Both are controlled by Germany’s Deutsche Telekom. Finland-based Nokia sells telecom network equipment and provides the software and services that go with them.

Regulators have demanded that operators improve the security of their networks at a time when threats and attacks are rising globally. Nokia will apply its NetGuard Audit Compliance Manager to minimize security risks to T-Mobile’s network and also help the operator improve its regulatory compliance.

In addition to securing the network, Nokia will upgrade T-Mobile’s optical network. The upgrade will enable the network to meet 5G demands and make it ready for future technological developments. Furthermore, the work is expected to increase the network’s cost efficiency. Nokia will use its WaveFabric service-ready platforms and WaveSuite software for the optical network renewal.

“Our intensified partnership with T-Mobile Netherlands leverages our deep understanding of their network while also ensuring heightened importance on protecting their network against possible cyber breaches,” commented Nokia’s Friedrich Trawoeger.

Nokia’s security and optical network upgrade contract with T-Mobile Netherlands will run for five years.

In another business win, Nokia will provide equipment and other services to AirFiber to help the broadband provider expand its fiber network in Bangalore and Tamil Nadu, India. (See Nokia stock analysis on TipRanks)

Charter Equity analyst Edward Snyder recently reiterated a Buy rating on Nokia stock without assigning it a price target. 

The analyst believes Nokia stands to benefit from the Sweden-China tensions. Sweden banned Chinese vendors from its 5G market with China likely to retaliate. Nokia’s Sweden-based competitor Ericsson (ERIC) now fears it could lose market share in China.

“Nokia to benefit if China excludes Ericsson from upcoming 5G tenders,” noted Snyder.

Consensus among analysts on Wall Street is a Moderate Buy based on 5 Buy and 3 Hold ratings. The average analyst price target of $5.65 implies 11.44% upside potential to the current price.

NOK scores a 6 out of 10 on TipRanks’ Smart Score rating system, suggesting the stock’s returns will likely align with the market performance.

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