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3 Reasons To Stay Long Nokia

Jul. 05, 2017 1:33 PM ETNokia Oyj (NOK)ERIC93 Comments
Motek Moyen profile picture
Motek Moyen


  • The United States still has a low average mobile internet speed. This bodes well for Nokia’s 4.5G LTE Advanced Pro infrastructure roll-out business.
  • Xiaomi has signed a network equipment supply and patent licensing agreement with Nokia. Other top Chinese phone manufacturers might follow soon.
  • Amazon is subsidizing a Nokia Android phone as part of its Prime Exclusive incentive program. Amazon has 80 million Prime subscribers.
  • Nokia needs Amazon’s marketing muscle to fortify its brand. A stronger brand power is  necessary because Nokia is trying to become a legit vendor of connected health tracking devices.

The number one reason to stay long Nokia (NYSE:NOK) is because its gigabit 4G LTE and 4.5G wireless network infrastructure services have a long-term tailwind in the United States. I expect Americans to eventually demand their wireless carriers to improve their mobile networks. Nokia will benefit when tier-1 wireless carriers in America start upgrading their wireless networks to be at par with the rest of the world.

As per the latest report of OpenSignal, the United States badly needs a better infrastructure for its nationwide mobile internet network. Yes, the mighty United States touts 86.5% LTE coverage, making it the world’s no.4 in terms of 4G signal availability.

Unfortunately, for Americans, the United States actually has a very low nationwide average 4G speed. It’s only 14.99 Mbps. This average LTE speed in the U.S. is a lot slower than Hungary’s 42.61 Mbps, and Croatia’s 35.19 Mbps. Croatia is a war-torn country and it has faster LTE speed than the United States!

(Source: OpenSignal)

Taking Control Of America's Wireless Network Infrastructure Industry

Nokia will only have to compete with Ericsson (ERIC) in vying for the next wireless infrastructure projects of AT&T (T), Verizon (VZ), T-Mobile (TMUS), and Sprint (S). As far as I know, Huawei is still banned from providing their LTE infrastructure services in the U.S.

China’s state-owned Huawei has conquered the world when it comes to networking hardware and smartphones. However, Nokia will still flourish in 4G and 5G mobile network infrastructure because some countries still do not trust Huawei.

AT&T and other tier-1 carriers in the United States will eventually have to improve their networks to retain their customers’ loyalty. The U.S. carrier which offers the fastest average nationwide LTE speed will ultimately become the favorite of U.S. mobile data subscribers.

One disgruntled AT&T mobile subscriber can write

This article was written by

Motek Moyen profile picture
Motek Moyen is a financial analyst, technician, and Adobe multimedia content creator. He studied Mathematics, Commercial Advertising, and Computer Science in the 1990s. He does not trade stocks.

Analyst’s Disclosure: I am/we are long NOK, AAPL. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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