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Ericsson (ERIC) to Power AT&T's Radio Access Network Deployment
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Ericsson (ERIC - Free Report) recently inked a five-year deal with AT&T Inc. (T - Free Report) , a major player in communication services, estimated at around $14 billion. By utilizing Ericsson’s comprehensive wireless equipment portfolio, AT&T is aiming to accelerate the deployment of an open and interoperable Radio Access Network (RAN) across the United States.
The strategic shift toward open, cloud-based, and programmable networks leveraging Ericsson's open architecture will empower AT&T to seamlessly integrate the next-generation wireless technology advancements. This will lay the groundwork for establishing an energy-efficient, sustainable network infrastructure.
Falling dependence on proprietary interfaces will bring several advantages in terms of enhanced scalability and optimized network management. Owing to this greater scalability, Open RAN can accommodate various network sizes and adapt to evolving demand patterns. The highly agile Open RAN system will simplify the introduction of new features and services. Its interoperability features support AT&T with smooth integration of components and foster better coordination with suppliers including Corning, Intel, Fujitsu and others. Transitioning to cloud RAN, the use of standardized hardware and software will result in long-term cost savings and improved operational efficiency.
Moreover, Ericsson’s decision to open up radio access networks will likely encourage healthy competition, speed up innovation and lower costs. These advancements will craft new performance-based business models backed by open interfaces and APIs. This will likely boost revenue potential for network operators.
For this venture, Ericsson will utilize its Texas-based 5G smart factory to produce cutting-edge 5G and Advanced Antenna System radios. By 2024, AT&T aims to operate fully integrated Open RAN sites in partnership with Ericsson and Fujitsu. The company is also aiming to leverage the open, capable platform for 70% of total wireless network traffic flow by 2026. With this partnership with Ericsson, AT&T seeks to build a robust and competitive wireless network across North America and match the fast-growing connectivity demand in the region.
This high-performance and differentiated network will serve as the cornerstone for the next phase of digitization. It will offer vital infrastructure and bandwidth necessary for advanced use cases such as IoT, AI, and ML applications and elevate end-user digital experience across industries. This agreement significantly underscores Ericsson's credibility in the wireless equipment market and is likely to fuel further business expansion.
With the emergence of the smartphone market and the subsequent usage of mobile broadband, user demand for coverage speed and quality has increased exponentially. To maintain performance with increased traffic, there is a consistent need for network tuning and optimization. Ericsson 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.
ERIC focuses on 5G system development and has undertaken many notable endeavors to position itself as a market leader. It believes that the standardization of 5G is the cornerstone for digitizing industries and broadband. Ericsson expects mainstream 4G offerings to give way to 5G technology in the future. It currently has 157 live 5G networks across the globe, spanning 66 countries.
The stock has lost 17.8% in the past year compared with the industry’s decline of 2.9%.
Image Source: Zacks Investment Research
Ericsson currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Model N Inc (MODN - Free Report) , sporting a Zacks Rank #1 (Strong Buy), delivered an earnings surprise of 20.78%, on average, in the trailing four quarters. In the last reported quarter, it pulled off an earnings surprise of 3.33%. You can see the complete list of today’s Zacks #1 Rank stocks here.
MODN provides revenue management solutions for life sciences and technology companies, including applications for configuration, price, quote, rebate management and regulatory compliance.
Arista Networks, Inc. (ANET - Free Report) , carrying a Zacks Rank #2 (Buy), is likely 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 delivered an earnings surprise of 12%, on average, in the trailing four quarters.
ANET holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed data center segment. Arista is increasingly gaining market traction in 200 and 400-gigabit high-performance switching products and is well-positioned for healthy growth in the data-driven cloud networking business with proactive platforms and predictive operations.
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Ericsson (ERIC) to Power AT&T's Radio Access Network Deployment
Ericsson (ERIC - Free Report) recently inked a five-year deal with AT&T Inc. (T - Free Report) , a major player in communication services, estimated at around $14 billion. By utilizing Ericsson’s comprehensive wireless equipment portfolio, AT&T is aiming to accelerate the deployment of an open and interoperable Radio Access Network (RAN) across the United States.
The strategic shift toward open, cloud-based, and programmable networks leveraging Ericsson's open architecture will empower AT&T to seamlessly integrate the next-generation wireless technology advancements. This will lay the groundwork for establishing an energy-efficient, sustainable network infrastructure.
Falling dependence on proprietary interfaces will bring several advantages in terms of enhanced scalability and optimized network management. Owing to this greater scalability, Open RAN can accommodate various network sizes and adapt to evolving demand patterns. The highly agile Open RAN system will simplify the introduction of new features and services. Its interoperability features support AT&T with smooth integration of components and foster better coordination with suppliers including Corning, Intel, Fujitsu and others. Transitioning to cloud RAN, the use of standardized hardware and software will result in long-term cost savings and improved operational efficiency.
Moreover, Ericsson’s decision to open up radio access networks will likely encourage healthy competition, speed up innovation and lower costs. These advancements will craft new performance-based business models backed by open interfaces and APIs. This will likely boost revenue potential for network operators.
For this venture, Ericsson will utilize its Texas-based 5G smart factory to produce cutting-edge 5G and Advanced Antenna System radios. By 2024, AT&T aims to operate fully integrated Open RAN sites in partnership with Ericsson and Fujitsu. The company is also aiming to leverage the open, capable platform for 70% of total wireless network traffic flow by 2026. With this partnership with Ericsson, AT&T seeks to build a robust and competitive wireless network across North America and match the fast-growing connectivity demand in the region.
This high-performance and differentiated network will serve as the cornerstone for the next phase of digitization. It will offer vital infrastructure and bandwidth necessary for advanced use cases such as IoT, AI, and ML applications and elevate end-user digital experience across industries. This agreement significantly underscores Ericsson's credibility in the wireless equipment market and is likely to fuel further business expansion.
With the emergence of the smartphone market and the subsequent usage of mobile broadband, user demand for coverage speed and quality has increased exponentially. To maintain performance with increased traffic, there is a consistent need for network tuning and optimization. Ericsson 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.
ERIC focuses on 5G system development and has undertaken many notable endeavors to position itself as a market leader. It believes that the standardization of 5G is the cornerstone for digitizing industries and broadband. Ericsson expects mainstream 4G offerings to give way to 5G technology in the future. It currently has 157 live 5G networks across the globe, spanning 66 countries.
The stock has lost 17.8% in the past year compared with the industry’s decline of 2.9%.
Image Source: Zacks Investment Research
Ericsson currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Model N Inc (MODN - Free Report) , sporting a Zacks Rank #1 (Strong Buy), delivered an earnings surprise of 20.78%, on average, in the trailing four quarters. In the last reported quarter, it pulled off an earnings surprise of 3.33%. You can see the complete list of today’s Zacks #1 Rank stocks here.
MODN provides revenue management solutions for life sciences and technology companies, including applications for configuration, price, quote, rebate management and regulatory compliance.
Arista Networks, Inc. (ANET - Free Report) , carrying a Zacks Rank #2 (Buy), is likely 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 delivered an earnings surprise of 12%, on average, in the trailing four quarters.
ANET holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed data center segment. Arista is increasingly gaining market traction in 200 and 400-gigabit high-performance switching products and is well-positioned for healthy growth in the data-driven cloud networking business with proactive platforms and predictive operations.