Nokia (NOK) Achieves Enhanced Flexibility in Cloud RAN Solution

April 11, 2024

35 3 minutes read

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Nokia Corporation NOK recently confirmed the successful completion of the Cloud RAN (Radio Access Network) trial with In-Line accelerator architecture. This trial took place at Nokia’s Open Cloud RAN innovation center in collaboration with Hewlett Packard Enterprise HPE and Arm Holdings plc ARM, a U.K.-based semiconductor and software design company.

Hardware acceleration technology plays a crucial role in Cloud RAN systems. In-Line and Look-Aside are the primary options for Cloud RAN acceleration. The In-Line accelerator ensures greater system scalability, significantly lower power consumption and seamless compatibility across multiple silicon architectures. This approach is aligned with Nokia’s anyRAN strategy.

Many operators are increasingly adopting a hybrid network approach, a mix of architectures, such as a combination of Purpose-Built RAN and Cloud RAN. Nokia’s In-Line accelerator stands out by providing the necessary performance parity and interoperability between Cloud and Classic RAN. It gives operators the flexibility to choose their preferred server designs, along with their choice of cloud infrastructure software and hardware stacks.

During the trial, an end-to-end Cloud RAN L3 data call was completed. Data calls refer to the establishment of a connection for information transmission between devices. The process involved the utilization of HPE ProLiant RL series servers and Ampere Computing’s Arm-based general-purpose processor in conjunction with Nokia’s Cloud RAN technology. The HPE ProLiant RL series servers provide next generation compute performance for a wide range of cloud native use cases. The test was conducted over the air utilizing the most common 5G capacity band used worldwide with the help of Nokia’s industry-leading Airscale baseband portfolio.

The trial effectively showcased the flexibility of Nokia’s Cloud RAN technology and demonstrated the viability of its anyRAN vision. These advancements will support network operators in managing the challenges associated with rising energy costs, improving efficiency and matching the demand of an evolving 5G landscape. This, in turn, is likely to strengthen Nokia’s market position and augment its long-term revenues.

Nokia is well-positioned for the ongoing technology cycle, given the strength of its end-to-end portfolio. Its installed base of high-capacity AirScale products, which enables customers to upgrade to 5G quickly, is growing fast. It is driving the transition of global enterprises into smart virtual networks by creating a single network for all services, converging mobile and fixed broadband, IP routing and optical networks with the software and services to manage them. Leveraging state-of-the-art technology, it is transforming the way people and things communicate and connect with each other.

NOK aims to create new business and licensing opportunities in the consumer ecosystem. It facilitates its customers to move away from an economy-of-scale network operating model to demand-driven operations by offering easy programmability and flexible automation needed to support dynamic operations, reduce complexity and improve efficiency. It seeks to expand its business into targeted, high-growth and high-margin vertical markets to address growth opportunities beyond its traditional primary markets.

The stock has declined 29.1% in the past year against the industry’s growth of 10%.

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Nokia currently has a Zacks Rank #4 (Sell).

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