Ericsson (ERIC - Free Report) recently announced that its 5G Radio Access Network and Core products and solutions are driving Orange Spain’s 5G services in Madrid and Barcelona. This follows the service provider’s nationwide commercial 5G launch on Sep 7. The Sweden-based telecom equipment maker currently has 108 commercial 5G agreements with operators, of which 58 are publicly announced contracts. The list includes 60 live 5G networks in 32 countries.
The company is witnessing healthy momentum in its business, based on the strategy to increase investments for technology leadership, including 5G. In Networks, the company’s ongoing activities are to invest in R&D to safeguard a leading product portfolio and cost leadership, increase investments in automation and serviceability to drive down costs, and selectively gain market share based on technology and cost competitiveness.
Importantly, the 5G deployment builds on more than 20 years of partnership between Ericsson and Orange Spain. The initial 5G deployments in Madrid and Barcelona will be followed by other locations under a four-year partnership to help Orange Spain develop its 5G offering across Spain. Operating on a 3.6GHz spectrum, the 5G network in Madrid and Barcelona is powered by the Ericsson Radio System.
Ericsson’s Radio System comprises hardware, software and services for radio, Radio Access Network Compute, antenna system, transport, power and site solutions. The solution enables smooth and cost-effective migration from 4G to 5G, supporting communication service providers to launch the avant-garde technology. It delivers Massive MIMO, a technology that significantly increases network capacity and spectral efficiency. Also, Ericsson is providing Orange Spain with a 5G Evolved Packet Core to support 5G New Radio non-standalone.
Through increased speed and lower latency, Orange Spain’s customers will be able to experience enhanced mobile broadband and advanced gaming. Ericsson’s 5G technology provides faster networks, better mobile broadband experiences to end-users, and gives mobile networks greater innovation capabilities. Ericsson’s 5G Radio Access Network and Core technologies will enable Orange Spain to deliver innovative services.
Ericsson’s portfolio spans Networks, Digital Services, Managed Services and Emerging Business. The company is optimistic regarding the long-term outlook. Considering the current visibility, it maintains the Group targets for 2020 and 2022.
Ericsson has a long-term (three to five years) earnings growth expectation of 26.3% compared with 15.2% of the industry. The stock has returned 41.8% in the past year compared with the industry’s growth of 20.6%.
Ericsson carries a Zacks Rank #3 (Hold), at present.
Some better-ranked stocks in the broader industry are Turtle Beach Corporation (HEAR - Free Report) , Vocera Communications, Inc. (VCRA - Free Report) and Acacia Communications, Inc. (ACIA - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Turtle Beach delivered a trailing four-quarter earnings surprise of 41%, on average.
Vocera delivered a trailing four-quarter earnings surprise of 70%, on average. The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters.
Acacia pulled off a trailing four-quarter earnings surprise of 17%, on average. The company’s earnings topped the consensus estimate in three of the last four quarters.
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