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Ericsson (ERIC) to Power Faroese Telecom's Network Modernization

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Ericsson (ERIC - Free Report) has been selected by Faroese Telecom, a leading communications service provider in the Faroe Islands, in an exclusive 5G Core and Radio Access Network (RAN) deal. The financial terms of the deal were not disclosed.

The Faroe Islands comprises 18 rocky, volcanic islands between Iceland and Norway in the North Atlantic Ocean. With a population of about 53,400, this self-governing archipelago is part of the Kingdom of Denmark.

In December 2020, it came to light that Ericsson and Faroese Telecom have jointly developed KIMA, a public safety solution across the Faroe Islands.

The latest deal marks a significant step toward unlocking the potential of 5G services and new use cases across the Faroe Islands. The operator will use Ericsson’s industry-leading technology to modernize its existing network. The deployment is expected to be completed in 2023.

The rollout of 5G and modernization of Faroese Telecom’s 4G network will be powered by Ericsson’s 5G RAN and Core products and solutions. It includes the Ericsson Radio System portfolio that covers Massive MIMO and Ericsson Antenna System.

Faroese Telecom aims to provide mobile signal anytime and anywhere, including deep underground. The modernized network is expected to transform the Faroe Islands’ main fishing industry.

The 5G network will serve vessels and fishing boats offshore through better coverage and higher speed. It can also be combined with Internet of Things and artificial intelligence capabilities to enable new use cases and boost sustainability efforts in the region.

Ericsson is well positioned to cash in on the market momentum with its competitive 5G product portfolio. It currently has 143 commercial 5G agreements with communications service providers, of which 81 are publicly announced, and includes 93 live 5G networks in 45 countries.

Ericsson’s shares have lost 2.3% in the past year against the industry’s growth of 23.5%.

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The stock currently has a Zacks Rank #4 (Sell).

Some better-ranked stocks in the industry are Clearfield, Inc. (CLFD - Free Report) , Juniper Networks, Inc. (JNPR - Free Report) and Qualcomm, Inc. (QCOM - Free Report) . While Clearfield sports a Zacks Rank #1 (Strong Buy), Juniper and Qualcomm carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Clearfield delivered a trailing four-quarter earnings surprise of 49%, on average.

Juniper pulled off a trailing four-quarter earnings surprise of 7.5%, on average.

Qualcomm delivered a trailing four-quarter earnings surprise of 13.5%, on average.