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Ericsson (ERIC) Powers 5G SA Technology Upgrade in Denmark

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Ericsson (ERIC - Free Report) recently revealed that TDC NET, a Denmark-based digital infrastructure provider, has selected its dual mode 5G Core solution to introduce 5G standalone technology in the European country. This is likely to help TDC NET meet the exponential growth of data-intensive applications and high-speed connectivity.

TDC NET is taking the initiative to transform from the existing 5G non-standalone (NSA) to 5G Standalone (SA) infrastructure. 5G SA offers several advanced features that make it superior to NSA. It offers lower latency than 5G NSA, which is essential for applications like autonomous vehicles, remote work and real-time gaming and healthcare services. The network slicing capability enables operators to optimize usage tailored to different use cases. All these features, combined with enhanced capacity and coverage, provide better support for emerging use cases such as loT innovation and enterprise and industrial automation.

 Ericsson and TDC Net have recorded an impressive 7 Gbps speed in a live site environment across the 5G SA network utilizing Ericsson Radio System products. The 5G SA technology also addresses the energy concerns. The faster data rates lower the energy consumption per transmitted gigabyte.

Initially, many operators opted to deploy 5G NSA as it can function by leveraging existing 4G infrastructure. The deployment of SA 5G requires a separate core network and, therefore a higher investment commitment. However, the unique features of Ericsson’s dual mode 5G core solutions effectively tackle this challenge.

Ericsson’s dual mode 5G core uses one common core network to streamline the introduction and management of new 5G services. It also optimizes capex and mitigates operational inefficiencies. This solution enables the evolution of the existing network into a cloud-native core architecture that supports multiple access technologies. It seamlessly integrates EPC (Evolved Packet Core) and the new 5G Core network functions in a unified software platform, ensuring fast and consistent network performance. This integration facilitates advanced use cases while maintaining cost efficiency and flexibility. The uniform approach in managing operations and maintenance among all network functions accelerates business model innovation and reduces the time to market for new services.

Ericsson is well-positioned to capitalize on the market momentum with its competitive 5G product portfolio. It strives to become a leading mobile infrastructure provider with a focused enterprise business. The company’s patent licensing business continues to perform well on the back of a robust intellectual property rights portfolio. The company’s approach to shift and align its research and development initiatives towards the evolving market dynamics is enabling it to improve revenue potential and brighten future commercial prospects.

Courtesy of R&D investments and operational efficiency, Ericsson has the world’s leading patent portfolio in cellular technology. It currently has 152 live 5G networks in 65 countries. Its ‘cost and efficiency program’ has been devised to generate higher cost savings. The company is focused on structural changes that will generate lasting efficiency gains and boost cost competitiveness.

The stock has lost 27.9% in the past year compared with the industry’s decline of 11.8%.

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Ericsson currently has a Zacks Rank #3 (Hold).

 

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