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Ericsson (ERIC) Solution to Upgrade Swisscom's Mobile Network

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Ericsson (ERIC - Free Report) recently announced that it has inked a new multi-year agreement with Switzerland’s leading telecommunications provider, Swisscom. Through the recent expansion of longstanding business collaboration, Swisscom is aiming to upgrade its mobile network by leveraging a range of advanced capabilities from Ericsson’s comprehensive portfolio.

As the digital landscape continues to evolve across industries, demand for seamless mobile network services continues to surge. The heightened requirements of network reliability and consistency to support next-generation use cases underscores the critical role of a resilient cloud-native telecom infrastructure.

Swisscom is the industry leader in Switzerland’s telecommunication landscape. Through the cloud native transformation plans, the company has been transitioning its workload to the cloud, encompassing both IT and network operations, to bolster the resilience of its mobile networks. However, with the growing usage of advanced applications, increasing operational expenses, energy consumption and sustainability are also becoming a concern.

Per the recently inked agreement, Ericsson is bringing a range of solutions to address these issues. Swisscom will incorporate the energy-efficient, lightweight dual-band radio 4490 with a state of art RAN (Radio Access Network) processor from Ericsson's RAN Compute portfolio. The RAN compute processor boasts the capability to support current and emerging radio technologies. It is also designed to perform real-time AI processing without a loss in capacity.

Ericsson's Cloud Native Infrastructure Solution will boost Swisscom’s capability to support cloud-based telecom applications, streamline the management of cloud platforms and optimize the total cost of ownership.

The solution suite includes Ericsson Intelligent Automation Platform (EIAP) featuring non-real-time RIC (RAN intelligent controller) applications. It is an end-to-end automation platform that effectively manages software applications and algorithms to optimize network performance. The incorporation of EIAP and the Software Development Toolkit will empower Swisscom to significantly enhance subscriber experience and drive operational savings through large-scale automation in the RAN. Additionally, Ericsson Expert Analytics, powered by AI and machine learning technology, addresses potential subscriber issues in real-time, ensuring superior quality of service for users.

In a bid to expand its mid-band TDD coverage, Swisscom will also deploy Ericsson’s Massive MIMO across a large number of sites. It will equip service providers to accommodate the ever-increasing data traffic and subscriber growth nationwide.

Ericsson’s witnessed soft demand in the European market in recent quarters. The multi-year agreement with Swisscom is a favorable aspect amid the persistence of market uncertainty in the region.

ERIC is well positioned to cash in on the market momentum with its competitive 5G product portfolio. The company continues to execute its strategy to become a leading mobile infrastructure provider and establish a focused enterprise business.It currently has 160 live 5G networks across the globe, spanning 68 countries.

The stock has lost 15.8% over the past year against the industry’s growth of 17.2%.

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Zacks Rank & Stocks to Consider

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

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Pinterest is increasingly establishing a unique value proposition to advertisers that could provide a competitive advantage in the long haul. Through various innovations, it continues to dramatically improve the advertising platform, which appears to be one of the best ad platforms for consumer discretionary brands looking for ways to reach customers and stretch smaller ad budgets.

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NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company’s focus evolved from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms.

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