Why Nokia Is Optimistic about Its Analytics Business


Oct. 11 2017, Updated 9:39 a.m. ET

Benefit to telecom operators

Nokia (NOK) believes telecom operators haven’t yet tapped the potential of analytics. The firm stated that Nokia’s analytics business is aimed at unlocking the value of telco data that will improve subscriber experience, churn rate, and generate new sources of revenue.

This business segment provides custom-made solutions with a zero-capex model. Nokia Analytics uses advanced techniques that reduce the time necessary to resolve problems. According to Nokia’s press release, “The growing complexity of networks is presenting new challenges to operators who are looking to improve the efficiency and cost-effectiveness of operations. The existing analysis of network performance often lacks important detail, is costly and time consuming.”

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AVA platform

Nokia states that its cloud-based AVA platform combines analytics, automation, and big data storage, allowing operators to take a cognitive approach and predict faults. Nokia has a contract with China Mobile (CHL) where its “Predictive Care for Packet Core” service automatically monitors over 3,000 KPIs (key performance indicators) with 98% accuracy in identifying network anomalies.

In 2Q17, Nokia’s applications and analytics revenue rose over 9% YoY (year-over-year) to $365 million, up from $334 million in 2Q16.


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