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Ericsson and U.S. Cellular Complete High-Speed 5G Trials
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Telefonaktiebolaget LM Ericsson (publ) (ERIC - Free Report) and the U.S.’s fifth largest full-service wireless carrier, U.S. Cellular Corporation (USM - Free Report) , recently announced the completion of joint testing of 5G in Madison, WI, achieving a peak throughput of 9Gbps. The successful completion of this trial highlights Ericsson’s dominant position in the 5G space, taking the U.S. a step closer to deploying this technology.
Strategic Partnerships to Commercialize 5G
These tests evaluated multiple new radio access (NX) carrier combinations, by using an experimental license from the Federal Communications Commission, to utilize the 15GHz spectrum. Moreover, the companies focused on other radio performance parameters, including testing resource sharing, beam tracking, peak throughput and multi-user MIMO, to name a few.
Ericsson and U.S. Cellular have been working closely to commercialize the 5G technology for quite some time, in order to develop industry standards for the 5G ecosystem. Meanwhile, Ericsson has already signed major 5G agreements with other biggies like Vodafone Group (VOD - Free Report) and Qualcomm Inc. (QCOM - Free Report) , to bank upon the commercialization of 5G technology. The company believes that these partnerships will help it reap benefits from 5G networks’ commercialization, starting 2020.
Promotion of 5G development is part of Ericsson’s three-pronged “core business growth”, the other two being targeted growth and cost & efficiency program. According to the company’s latest mobility report, there will be 550 million 5G subscriptions in 2022, with North America being at the top, where a quarter of all mobile subscriptions are expected to be for 5G.
Ericsson Goes Downhill
Ericsson has been on wobbly grounds for quite some time now, grappling with a host of factors, including soft mobile broadband demand, slowdown in emerging markets and weaker-than-expected benefits from cost-cutting efforts. Plagued by these factors, shares of the company have recorded an average negative return of 24.3% in the past six months, comparing unfavorably with that of the Zacks categorized Wireless Equipment industry average of 9.3%.
With three back to back earnings misses over the trailing four quarters, Ericsson has an unimpressive average negative earnings surprise of 23.0%. Further, with the Zacks Rank #3 (Hold) company’s earnings estimates moving south, over the past couple of months, no immediate respite is in sight. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for 2016 earnings descended from 50 cents to 33 cents over the past two months, attributable to five downward estimate revisions compared with none upward.
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Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>
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Ericsson and U.S. Cellular Complete High-Speed 5G Trials
Telefonaktiebolaget LM Ericsson (publ) (ERIC - Free Report) and the U.S.’s fifth largest full-service wireless carrier, U.S. Cellular Corporation (USM - Free Report) , recently announced the completion of joint testing of 5G in Madison, WI, achieving a peak throughput of 9Gbps. The successful completion of this trial highlights Ericsson’s dominant position in the 5G space, taking the U.S. a step closer to deploying this technology.
Strategic Partnerships to Commercialize 5G
These tests evaluated multiple new radio access (NX) carrier combinations, by using an experimental license from the Federal Communications Commission, to utilize the 15GHz spectrum. Moreover, the companies focused on other radio performance parameters, including testing resource sharing, beam tracking, peak throughput and multi-user MIMO, to name a few.
Ericsson and U.S. Cellular have been working closely to commercialize the 5G technology for quite some time, in order to develop industry standards for the 5G ecosystem. Meanwhile, Ericsson has already signed major 5G agreements with other biggies like Vodafone Group (VOD - Free Report) and Qualcomm Inc. (QCOM - Free Report) , to bank upon the commercialization of 5G technology. The company believes that these partnerships will help it reap benefits from 5G networks’ commercialization, starting 2020.
Promotion of 5G development is part of Ericsson’s three-pronged “core business growth”, the other two being targeted growth and cost & efficiency program. According to the company’s latest mobility report, there will be 550 million 5G subscriptions in 2022, with North America being at the top, where a quarter of all mobile subscriptions are expected to be for 5G.
Ericsson Goes Downhill
Ericsson has been on wobbly grounds for quite some time now, grappling with a host of factors, including soft mobile broadband demand, slowdown in emerging markets and weaker-than-expected benefits from cost-cutting efforts. Plagued by these factors, shares of the company have recorded an average negative return of 24.3% in the past six months, comparing unfavorably with that of the Zacks categorized Wireless Equipment industry average of 9.3%.
With three back to back earnings misses over the trailing four quarters, Ericsson has an unimpressive average negative earnings surprise of 23.0%. Further, with the Zacks Rank #3 (Hold) company’s earnings estimates moving south, over the past couple of months, no immediate respite is in sight. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for 2016 earnings descended from 50 cents to 33 cents over the past two months, attributable to five downward estimate revisions compared with none upward.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>