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Verizon (VZ) Pioneers O-RAN Integration to Boost Network

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Verizon Communications Inc. (VZ - Free Report) , a frontrunner in embracing virtualized and open RAN (Radio Access Network) technologies, has propelled the deployment of more than 130,000 O-RAN capable radios, including massive MIMO radios. This significant milestone reinforces Verizon's dedication to fostering O-RAN standards and technology, marking a pivotal shift toward a more open and interoperable network ecosystem.

The transition to Open RAN holds the promise of multifaceted benefits, ranging from enhanced deployment flexibility to accelerated innovation within an open environment. By fostering competition and encouraging new entrants, Verizon aims to diversify its supplier base, ultimately translating into superior service options for consumers.

Verizon's strategic move toward O-RAN is rooted in its extensive network modernization efforts, which encompass virtualization and orchestration. The deployment of a cloud-native, container-based, virtualized architecture has already led to increased flexibility, scalability and cost efficiency across Verizon's network.

Furthermore, Verizon's early adoption of VRAN (Virtualized Radio Access Network) serves as a precursor to O-RAN integration. By virtualizing core network functions and baseband units, Verizon has laid a robust foundation for future deployment flexibility and rapid integration of services.

The seamless integration of O-RAN into Verizon's network architecture is poised to revolutionize the telecommunications landscape. This transition not only underscores Verizon's commitment to technological advancement but also positions the company at the forefront of innovation within the industry.

With one of the most efficient wireless networks in the United States, Verizon deploys the latest technologies to deliver faster peak data speeds and capacity for customers, driven by customer-focused planning, disciplined engineering and constant strategic investment. The company remains focused on making necessary capital expenditures due to the expansion of 5G mmWave in new and existing markets, the densification of the 4G LTE wireless network to cater to huge traffic demands across multiple verticals and the continued deployment of the fiber infrastructure.

Verizon’s 5G mobility service offers an unparalleled experience that impacts industries as diverse as public safety, health care, retail and sports. The company’s 5G network hinges on three fundamental drivers to deliver the full potential of next-generation wireless technology. These are massive spectrum holdings, particularly in the millimeter-wave bands for faster data transfer, end-to-end deep fiber resources and the ability to deploy a large number of small cells.

The stock has gained 2% over the past year compared with the industry’s rise of 1.3%.

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Verizon carries a Zacks Rank #3 (Hold).

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

Key Picks

Arista Networks, Inc. (ANET - Free Report) , sporting a Zacks Rank #1, 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 has a long-term earnings growth expectation of 19.8% and delivered an earnings surprise of 12%, on average, in the trailing four quarters.

It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. Arista is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.

Headquartered in Wilmington, DE, InterDigital, Inc. (IDCC - Free Report) is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks.

This Zacks Rank #2 (Buy) stock has a long-term earnings growth expectation of 17.4% and has surged 75.3% in the past year. A well-established global footprint, diversified product portfolio and ability to penetrate different markets are key growth drivers for InterDigital. The addition of technologies related to sensors, user interface and video to its already strong portfolio of wireless technology solutions is likely to drive considerable value, given the massive size of the market it offers licensing technologies to.

Ubiquiti Inc. (UI - Free Report) , carrying a Zacks Rank #2 at present, is a key pick in the broader industry. Headquartered in New York, it offers a comprehensive portfolio of networking products and solutions for service providers and enterprises at disruptive prices.

It boasts a proprietary network communication platform that is well-equipped to meet end-market customer needs. In addition, it is committed to reducing operational costs by using a self-sustaining mechanism for rapid product support and dissemination of information by leveraging the strength of the Ubiquiti Community.

Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.

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