Back to top

Image: Bigstock

AT&T (T) Partners Northrop Grumman for Key 5G Defense Service

Read MoreHide Full Article

AT&T Inc. (T - Free Report) collaborated with Northrop Grumman Corporation (NOC - Free Report) and Fujitsu to design new 5G-powered open architecture capabilities to support joint force. To transmit intelligence, surveillance and reconnaissance (ISR) data and video, radios were used in conjunction with AT&T's private 5G network, Northrop Grumman's tactical data links and Fujitsu's Open Radio Access Network (O-RAN) at the demonstration.

The demo was carried out in Northrop Grumman's new 5G lab. To facilitate multi-domain operations, this is a crucial phase in the construction of the digital combat network. With the collaboration with Northrop Grumman, one of the top US defense contractors, AT&T has showcased its credibility in creating and offering cutting-edge and reliable 5G network services for military applications as well.

The Department of Defense intends to create a digital battle network across its air, land, sea, space and cyber units in order to improve communication and real-time information-sharing capabilities. The collaboration aims to bring a cost-effective, scalable and open architecture solution that will provide a significant tactical advantage on the battlefield that minimizes the decision-making process and ensures optimization of resources. AT&T’s 5G capabilities, blended with Fujitsu’s O-RAN and Northrop Grumman’s strong defense systems, will ensure high speed, low latency and better cyber security protections.

AT&T is poised to benefit from the impending 5G boom. As the first carrier in the industry, the company has unveiled its 5G policy framework that will hinge on three pillars — mobile 5G, fixed wireless and edge computing. AT&T intends to deploy a standards-based nationwide mobile 5G network. Its 5G service entails utilizing a millimeter wave spectrum for deployment in dense pockets in suburban and rural areas. An integrated fiber expansion strategy is expected to improve broadband connectivity for enterprise and consumer markets, while steady 5G deployments are likely to boost end-user experience.

AT&T anticipates gaining a competitive edge over rivals through edge computing services that allow businesses to route application-specific traffic where they need it and where it’s most effective — whether that’s in the cloud, the network or on their premises. Through its Multi-access Edge Compute (MEC) solution, the company offers the flexibility to better manage the data traffic. The MEC leverages an indigenous software-defined network to enable low-latency, high-bandwidth applications for faster access to data processing. AT&T expects edge computing solutions to be widely available in autonomous vehicles, drones, robotic production lines and autonomous forklifts in the near future.

AT&T has lost 29.7% over the past year against the industry’s decline of 9.8 %.

Zacks Investment Research
Image Source: Zacks Investment Research

AT&T currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Cambium Networks Corporation (CMBM - Free Report) , sporting a Zacks Rank #1, Cambium is well-poised to benefit from robust demand for wireless broadband connectivity and the acceptance of its new products. Being the leading provider of access network solutions, it benefits from cost-effective operations. Cambium capitalizes on its cloud-based network management software that enables operators to seamlessly design, deploy and manage their networks from cloud-to-tower-to-edge.
Cambium delivered a trailing four-quarter earnings surprise of 109.3%, on average. CMBM’s stock has gained 5.1% in the past year.

Arista Networks, Inc. (ANET - Free Report) , carrying a Zacks Rank #2 (Buy), Arista continues to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience.

Arista reported strong third-quarter 2022 results, with the bottom and the top line beating the respective Zacks Consensus Estimate. The beat can be attributed to driven by solid demand trends and healthy customer additions. It delivered an earnings surprise of 12.7%, on average, in the trailing four quarters. Despite supply chain disruptions, total revenues soared 57.2% year over year to $1,176.8 million (3rd quarter results).


Published in