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Ericsson (ERIC) Announces 5G Core Partnership With TPG Telecom

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Ericsson (ERIC - Free Report) has completed the virtualization of TPG Telecom’s core network and announced a new partnership to deploy 5G Core for standalone 5G networks.

TPG Telecom is an Australia-based telecommunications company that operates brands like Vodafone, TPG, iiNet, AAPT, Internode, Lebara, and felix.

The virtualization was enabled by the Telco Cloud Transformation partnership between TPG Telecom and Ericsson, delivering a Network Function Virtualization Infrastructure platform to virtualize TPG Telecom’s core network.

TPG Telecom’s 5G services are available in select areas in more than 700 suburbs around Australia. The company currently has about 1,600 sites in the initial stage. It aims to cover 85% of the population in 10 of Australia’s largest cities by the end of this year.

TPG Telecom has extended its partnership with Ericsson to include the deployment of its 5G Core for a standalone network. Ericsson’s cloud native dual-mode 5G Core will boost service and technology innovation for TPG Telecom’s customers.

Ericsson’s shares have gained 11.3% in the past year compared with the industry’s growth of 36%.

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The 5G standalone Core Network will enable TPG Telecom to deliver innovative services and emerging industry 5G applications with greater flexibility.

The network architecture will allow TPG Telecom to combine 4G and 5G technologies on one platform, offering tailored services for its customers. The cloud-native 5G Core network will deliver the full benefits of automation and enhance the 5G customer experience.

Ericsson is well-positioned to cash in on the market momentum with its competitive 5G product portfolio. The company expects to benefit from its strategy that hinges on increased investments in research and development for technology leadership.

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 and Juniper sport a Zacks Rank #1 (Strong Buy), Qualcomm carries 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.