Telecommunications major Nokia Corporation (NYSE: NOK) recently revealed that it has been selected by Indonesian telecommunications provider Indosat Ooredoo Hutchison to deploy and expand its 4G and 5G network across Indonesia.
Following the news, shares of the company declined 3.3% to close at $4.80 on Friday.
Under the three-year deal, Nokia will cover an area of roughly 1.4 million square kilometers, including Sumatra island, Kalimantan island, Central Java and Surabaya city. Nokia will provide solutions from its AirScale portfolio, including base stations and 5G Single RAN, for both premium indoor and outdoor coverage.
Further, the company will look at improving data throughput and customer experience by preparing the network for early 5G deployments.
The President of Mobile Networks at Nokia, Tommi Uitto, said, “We are looking forward to supporting Indosat Ooredoo Hutchison in this crucial initiative to expand its coverage footprint and prepare the networks for more innovative 5G services in the near future. Nokia’s 5G-ready AirScale portfolio will help Indosat Ooredoo Hutchison to launch next-generation services while helping it to bring down its operational expense.”
Consensus among analysts is a Strong Buy based on 4 Buys and 1 Hold. The average Nokia price target of $7.48 implies upside potential of 55.8% from current levels. Shares have gained 24% over the past year.