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Ericsson (ERIC) Tests 5G Network Validity in Cross-Border Travel

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Ericsson (ERIC - Free Report) recently carried out successful tests for 5G network validity in cross border travel across vehicles as part of the EU-funded 5GCroCo project. The tests undertaken in collaboration with Swedish car manufacturing firm Volvo Group are likely to sow the seeds for large-scale connected car program in the near future.

The 5GCroCo project aims to test the efficacies of 5G technologies in the cross-border corridor along France, Germany and Luxembourg. The trials are likely to benefit the telecommunications and automotive sectors by defining new business models developed on the premise of seamless connectivity and service provisioning capacity.

Ericsson conducted the trial at the AstaZero test track in Sweden by deploying a 5G mobile radio network in two Volvo cars that enabled them to receive an HD map of the route ahead. The maps were updated with information from sensor readings and real-time feeds through the Mobile Edge Cloud, offering relevant information about boundaries, obstacles and turning lanes. The functionality was facilitated by the Cooperative, Connected and Automated Mobility ecosystem that enables autonomous and connected cars to behave like smart clusters rather than individual units.

Notably, similar tests were executed a few days back by Verizon Communications Inc. (VZ - Free Report) when it partnered with Honda Motor Co., Ltd. (HMC - Free Report) to test the effectiveness of 5G and mobile edge computing in connected and autonomous vehicles. The tests aimed to explore various ways in which safe driving could be practiced to avert accidents. The combined research program was part of their broader industry-wide partnership with government and academia within the University of Michigan’s Mcity facility, a test bed for connected and autonomous vehicles.

Leveraging Verizon’s 5G Ultra Wideband, mobile edge computing platform and Vehicle-to-Everything (V2X) communication systems, this research aimed to test how superfast reliable data transfer between road infrastructure and vehicle could reduce collisions and save lives. These involved low latency data transmission between drivers and other cars, traffic lights, pedestrians and emergency vehicles to improve threat detection and avoid possible accidents through real-time communication, with sensors installed in street lights and traffic posts. Although the research is in preliminary stages, it is expected to make way for seamless 5G-enabled vehicle communications in the future, potentially reducing accidents through human error.

The successful Ericsson-Volvo test highlights the significance of 5G network connectivity for vehicular traffic across geographical borders. The company’s 5G radio access technologies provide the infrastructure required to meet the growing demand for high-bandwidth connections and support the real-time, low-latency, high-reliability communication requirements of mission-critical applications.

To date, Ericsson has secured 127 commercial 5G agreements with unique communication service providers, of which 79 are live networks. The company is increasingly focusing on 5G system development to capitalize on the upcoming market opportunities. The company believes standardization of 5G is the cornerstone for digitization of industries and broadband. Moreover, Ericsson foresees mainstream 4G offerings to give way to 5G technology in the future. The extensive deployment of 5G networks is expected to boost the adoption of IoT devices, with technologies like network slicing gaining more prominence. Currently, Ericsson is investing in its competitive 5G-ready portfolio to enable customers to seamlessly migrate to 5G. AI and automation remain key enablers for its business development.

The stock has gained 54% over the past year compared with the industry’s rise of 55.6%.

We remain impressed with the inherent growth potential of this Zacks Rank #3 (Hold) stock. A better-ranked stock in the industry is Clearfield, Inc. (CLFD - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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