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How Frontier Could Catalyze Growth for Nokia

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Frontier taps Nokia’s G.fast for a network upgrade

Nokia (NOK) is helping Frontier (FTR) boost Internet speeds for its customers who still rely on copper wire connections. By using Nokia’s network-bridging technology, G.fast, Frontier has said that it will bring fiber-like broadband speeds to customers living in apartments and multidwelling units.

Not only is Nokia’s technology helping Frontier to boost Internet speeds for its customers, Frontier also views the process as a low-cost network upgrade. Nokia’s G.fast will spare Frontier the headache of having to drill holes and fit fiber cables into each apartment unit. Such a process would be time-consuming, frustrating to customers, and costly on Frontier’s end.

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G.fast saves network upgrade costs

The cost-saving aspect of Nokia’s G.fast is likely to draw more cable Internet providers to the technology, leading to more business for the company. Frontier’s deployment of G.fast began in Connecticut.

Comcast (CMCSA), Charter Communications (CHTR), and CenturyLink (CTL) are some of the Internet providers that have been upgrading their networks to offer faster connection speeds to their customers. Demand for high-speed Internet is growing rapidly, fueled by the rise of online video services.

Network solutions

Selling network solutions is Nokia’s largest operation. Its networks business pulled in revenue of 4.9 billion euros 1Q17, a fall of 6.0% compared to a year earlier, as we can see in the chart above. 

The networks business contributed the bulk of the 5.4 billion euros Nokia reported in 1Q17.

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