Ericsson (ERIC - Free Report) recently announced that it has expanded collaboration with Ireland’s largest mobile network operator — Three Ireland — for deployment of 5G network across the country. Apparently, the telco will leverage key products and solutions from the avant-garde portfolio of Ericsson Radio System to seamlessly migrate from 4G to 5G. Financial terms of the agreement have not yet been disclosed.
Three Ireland is considered as one of the leading Internet service providers, which caters to nearly 2.4 million customers with enhanced telecommunications services. As a subsidiary of CK Hutchison, the company has invested more than €2 billion in Ireland and operates under the global brand name — Three. It provides best-in-class mobile data with improved broadband experience to both rural and urban areas, thereby eliminating the digital disparity. Notably, the relationship between the companies dates back to 2019 when the Irish telco ditched Huawei over Ericsson for 5G deployment, given the ongoing controversies surrounding the Chinese tech giant.
Markedly, Ericsson Radio System comprises hardware, software and services for radio, RAN Compute, antenna system, transport, power and site solutions. The multi-band and wide-band 5G radios as well as 5G-optimized basebands included in the system support the communication service providers with flexible 5G installments and provide the infrastructure required to meet the growing demand for high-bandwidth connections. Impressively, it supports use cases for businesses with real-time, high-reliability communication requirements of mission-critical applications.
Meanwhile, Ericsson’s virtualized 5G Core platform will aid Three to offer ultra-low network latency with high throughputs across Ireland. Being a vital cornerstone of 5G networks, the innovative platform provides differentiated services and business flexibility with utmost efficiency. Apart from establishing a reliable and secure network connectivity, the 5G Core solution simplifies day-to-day operations, enhances network capabilities and augments broadband speeds for end users with minimum operational overheads. It is equipped with a future-proof architecture with advanced functionalities and digitizes new-age societies to capture new business opportunities. Till now, the collaboration has rolled out 5G in 315 locations across the nation with an estimate of setting up 5G in additional 500 locations in 2021.
Currently, Ericsson is witnessing healthy momentum in its business with continued investments for technology leadership, including 5G. Its mobility report predicts 1.9 billion mobile 5G subscriptions globally by the end of 2024, up from 1.5 billion predicted in the mobility report of 2018. In Networks, the company’s ongoing activities include investments in R&D to safeguard a leading product portfolio and cost leadership; increase investments in automation and serviceability, while lowering costs; and selectively gain market shares led by technology and cost competitiveness. Further, the company is on track with its 2020 and 2022 financial targets while progressing toward building a stronger company in the long term.
Ericsson currently has a Zacks Rank #3 (Hold). It has a long-term earnings growth expectation of 26.3%. The stock has gained 34.2% compared with industry’s growth of 20% in the past year.
Some better-ranked stocks in the broader industry are America Movil, S.A.B. de C.V. (AMX - Free Report) , Ceragon Networks Ltd. (CRNT - Free Report) and Motorola Solutions, Inc. (MSI - Free Report) . While America Movil sports a Zacks Rank #1 (Strong Buy), Ceragon and Motorola carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
America Movil has a long-term earnings growth expectation of 15.8%.
Ceragon has a long-term earnings growth expectation of 15%.
Motorola delivered a trailing four-quarter positive earnings surprise of 11.1%, on average.
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