Nokia Networks, a division of Nokia Corp. NOK has decided to overhaul its corporate strategy with a major emphasis on the enterprise service segment. Last year, the company acquired its rival company Alcatel-Lucent for $17.4 billion. The acquisition has positioned Nokia Networks as a formidable player in the enterprise segment.
Nokia’s network infrastructure offering is mainly telecom operator centric. The acquisition of the wireless business of Alcatel-Lucent has significantly strengthened Nokia’s foothold in North America. Leading U.S. telecom operators, namely, Verizon Communications Inc. VZ and AT&T Inc. T are prominent customers of Alcatel-Lucent. Additionally, Alcatel-Lucent has a strong presence in China while Nokia enjoys considerable dominance in Europe and Asia.
But more importantly, Alcatel-Lucent has lucrative assets to support the enterprise segment which Nokia is capitalizing on to get a strong foothold in the sector already dominated by large network infrastructure solution providers like Cisco Systems Inc. CSCO and Huawei Technologies Co. Ltd.
The merged entity can effectively capitalize on the emerging Internet-of-Things (IoT) platform and offer competent triple-play voice, video and data solutions across the world. The core focus areas will be next-generation 5G wireless technology, IP and software, defined networking, cloud-based solutions, big data analytics, and sensors and imaging.
The takeover of Alcatel-Lucent by Nokia has created a network solutions behemoth in the industry with a significant global customer base and solid operational efficiencies. Nokia boasts strong technical expertise in professional managed services and customer experience management apart from a rich portfolio of mobile broadband infrastructure and 4G LTE network.
On the other hand, Alcatel-Lucent enjoys relative advantage in IP-based products, optical networking, cloud computing/software-defined networking, fixed broadband network and professional services.
Nokia currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Zacks Investment Research