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Verizon (VZ) & KDDI to Offer Cellular Connectivity to AFEELA

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Verizon Communications Inc. (VZ - Free Report) recently announced its intention to team up with KDDI Corporation to provide innovative connected car capabilities to AFEELA's first mass-production electric vehicles (EVs) in the United States. AFEELA is a brand of Sony Honda Mobility (SHM), which was established by Sony and Honda for the development of EVs. AFEELA is an advanced software-defined EV that features pioneering sensing technology coupled with AI functionalities and connected features.

Japan-based telecom operator KDDI is a major telecommunications company that offers a robust range of services, including mobile communication, fixed-line communication and Internet services. The company collaborates with other telecommunications companies and industry partners to augment its service portfolio and explore new investment opportunities.

The integration of Verizon's robust 5G and 4G LTE networks with KDDI's Global Communications Platform is aimed at providing AFEELA vehicles with high-class cellular connectivity and advanced mobility features. SHM perceives AFEELA as more than just an EV by promoting an interactive relationship between mobility and its users with the help of sensing and network IT technologies. The vehicle is slated to launch in 2025, with deliveries starting in North America in spring 2026.

The strategic collaboration is likely to harness the power of Verizon’s 5G network to shape the future telematics and connectivity services in the United States' automotive industry. The initiative will aid the company in solidifying its portfolio against other players in the telecom market.

Based in New York, Verizon was formed through the merger of Bell Atlantic and GTE Corp. The company offers communication services in the form of local phone service, long-distance, wireless and data services.

Verizon’s performance is gaining from significant 5G adoption and wireless traction. It is offering various mix-and-match pricing in both wireless and home broadband plans, which has led to solid client additions. Focus on emerging growth services like cloud, security and professional services will likely reap long-term benefits. Its’ mmWave footprint delivers game-changing experiences for the densest parts of the network. However, lower wireline and wireless equipment revenues are major concerns.

Verizon currently carries a Zacks Rank #3 (Hold).

The stock has gained 4.6% in the past year compared with the industry’s rise of 1.3%.

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IDCC 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.

Arista Networks, Inc. (ANET - Free Report) , carrying a Zacks Rank #2 at present, 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 delivered an earnings surprise of 13.28%, on average, in the trailing four quarters.

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

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.

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