Nokia's Boost for Malaysia's Data Centre Connectivity
Nokia has entered into a partnership with Telekom Malaysia ("TM") to enhance data centre connectivity across Malaysia. This collaboration will see the deployment of a cutting-edge Dense Wavelength Division Multiplexing (DWDM) network, designed to revolutionise the management of growing data traffic. The partnership is expected to be particularly beneficial for TM's hyperscaler customers, who require robust, real-time, low-latency services.
The deployment will cover a vital route stretching from the Malaysia-Thailand border to the Malaysia-Singapore border, directly connecting the country's main data centres. This will serve as the backbone for handling the exponential growth in data traffic, ensuring seamless hyperconnectivity across key regions. The network's capacity will enable TM to accelerate its adoption of AI, utilising advanced automation to optimise network performance and operations.
At the heart of this innovative solution is Nokia's fifth-generation super-coherent Photonic Service Engine (PSE-Vs). This state-of-the-art technology offers exceptional transmission performance over long distances, crucial for managing the immense data volumes generated by hyperscalers. Furthermore, the PSE-Vs promotes environmental sustainability with its low energy consumption per bit, aligning with global energy efficiency standards.
This partnership marks a significant win for Nokia. It reinforces the company's leading position in optical networking solutions while strengthening its foothold in the Asia-Pacific region. By providing both technical expertise and locally manufactured DWDM equipment, Nokia is well-positioned to ensure the smooth implementation of this critical project. This, in turn, will enhance the company's revenue potential in this rapidly expanding market and play a pivotal role in transforming Malaysia's data infrastructure.
Nokia is well-equipped for the ongoing technology cycle, boasting a robust end-to-end portfolio. Its installed base of high-capacity AirScale products, which enables customers to upgrade to 5G rapidly, is expanding quickly. The company is driving the transition of global enterprises into smart virtual networks by creating a single network for all services. This includes converging mobile and fixed broadband, IP routing and optical networks, all managed by its software and services.
The company is utilising state-of-the-art technology to transform the way people and things communicate and connect. Nokia aims to create new business and licensing opportunities in the consumer ecosystem. It empowers customers to move away from an economy-of-scale network operating model towards demand-driven operations by offering readily programmable and flexible automation. These features support dynamic operations, reduce complexity and improve efficiency. Nokia seeks to expand its business into targeted, high-growth and high-margin vertical markets to address growth opportunities beyond its traditional core markets.
The stock has gained 8.6% in the past year, compared with the industry's growth of 50.5%.
