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Ericsson (ERIC) Extends 5G Deal With Far EasTone in Taiwan

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Ericsson (ERIC - Free Report) has been selected by Far EasTone Telecom (“FET”) as its supplier for 5G Standalone and Non-standalone dual-mode 5G Core and Voice over LTE services. FET is a leading company in Taiwan that provides telecommunications and digital application services.

Ericsson currently has 79 live 5G networks in 40 countries and 131 commercial 5G agreements with service providers. The company continues to invest for strengthening its portfolio and growing global footprint. It is benefiting from accelerated 5G deployments in North-East Asia, North America and Europe.

This deal is an extension of Ericsson’s 5G partnership with FET, which includes the deployment of commercial 5G in July 2020. Ericsson will help FET expand its 5G Non-standalone capabilities and Standalone evolution on the different frequencies. The deal includes planning and design services for network expansion and transformation.

The deal covers Ericsson Radio System products, which enables operators to go for a smooth and cost-effective migration from 4G to 5G. Ericsson’s AI-driven Cognitive Optimization will be deployed for the first time in Taiwan. The technology ensures continuous optimization for 5G network performance and a better customer experience.

Ericsson will also provide a turnkey solution to deploy cloud-native dual-mode 5G Core. The Cloud VoLTE solution will enable FET to improve the voice user experience in 4G networks and build a world-class 5G network.

Investments in research and development have established Ericsson as a leader in 5G. The company’s patent licensing business continues to perform well, backed by a strong intellectual property rights portfolio.

Ericsson has a long-term (three to five years) earnings growth expectation of 28.9% compared with 16.2% of the industry. The stock has gained 60.9% compared with the industry’s growth of 48.1% in the past year.



Ericsson currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader industry are Aviat Networks (AVNW - Free Report) , Plantronics and Ubiquiti (UI - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Aviat Networks delivered a trailing four-quarter earnings surprise of 61.7%, on average.

Plantronics delivered a trailing four-quarter earnings surprise of 560.4%, on average.

Ubiquiti delivered a trailing four-quarter earnings surprise of 37.1%, on average.

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