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Ericsson (ERIC) to Power 5G Core SA Network for Vodafone Spain

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Ericsson (ERIC - Free Report) recently inked a deal for an undisclosed amount with Vodafone Spain, an operating unit of Vodafone Group Plc (VOD - Free Report) , to help the latter deploy pre-commercial 5G Core Standalone (SA) network across the European country. Per the contract, the Nordic firm will also provide support services for the entire cloud-native 5G Core applications within the SA network.

Earlier, 5G networks were mostly deployed in Non-standalone (NSA) mode, wherein 5G network availability was dependent on the underlying LTE network for signaling support. The SA 5G NR (New Radio) software from Ericsson eliminates this 4G dependency by enabling carriers to augment their network capabilities with a simpler architecture. Moreover, it improves network speed and simplifies mobility management with seamless access to wide 5G bands for better user experience.

Ericsson has completed SA 5G interoperability with key ecosystem partners like T-Mobile US, Inc. (TMUS - Free Report) and Telstra Corporation Limited . The simplified SA architecture in RAN (radio access network) and the connected devices will provide Vodafone Spain improved 5G connectivity with low latency and wider coverage. In addition, Ericsson’s Cloud Packet Core and Cloud Unified Data Management solutions will offer the wireless carrier a common multi-access and cloud-native platform with full interoperability features to support 5G and as well as previous generations for seamless operation. This, in turn, will enable Vodafone Spain to unlock the full potential of 5G as it embarks on a journey to provide 5G SA connectivity services throughout the country.

Ericsson's 5G NR RAN is an integral component of its 5G Platform and includes software support for migration from LTE (Long-Term Evolution), a 4G mobile communications standard, to NR, a global 5G standard. It reportedly offers an industry-leading performance on the smallest site footprint with the lowest energy consumption as networks grow in scale and complexity.   

Ericsson Radio System comprises hardware, software and services for radio, RAN Compute, antenna system, transport, power as well as site solutions. It enables smooth and cost-effective migration from 4G to 5G, supporting communications service providers to launch the avant-garde technology and grow 5G coverage fast. 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.

With the emergence of the smartphone market and the subsequent usage of mobile broadband, user demand for coverage speed and quality has increased exponentially. Further, to maintain performance with increased traffic, there is a continuous need for network tuning and optimization. Ericsson, being one of the premier telecom service providers, is much in demand among operators to expand network coverage and upgrade networks for higher speed and capacity. The company is reportedly the world’s largest supplier of LTE technology with a significant market share and has established a large number of LTE networks worldwide.

Ericsson is focusing on 5G system development and has undertaken many notable endeavors to position itself for market leadership on 5G. The company believes that standardization of 5G is the cornerstone for digitization of industries and broadband. Ericsson foresees mainstream 4G offerings to give way to 5G technology in the future. The deployment of 5G networks is expected to boost the adoption of IoT devices with technologies like network slicing gaining more prominence.

The stock has gained 35.5% over the past year compared with the industry’s rise of 48.7%.

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