Ericsson (ERIC - Free Report) announced the expansion of its Customer Experience Management (“CEM”) solution portfolio with the launch of Ericsson Expert Analytics Release 16.1 for multi-play networks. This recent offering from Ericsson is scheduled for commercial release in fourth-quarter 2016.
Revamped Ericsson Expert Analytics
A big data analytics solution – Ericsson Expert Analytics – is a key player in the mobile marketplace with a robust portfolio of global clients, ranging from engineering and service operations to customer care and product management. Ericsson Expert Analytics Release 16.1 is the latest version of the technology. It has a Service Qualify Management functionality feature to improve customer experience of fixed and multi-play subscribers.
Ericsson Expert Analytics Release 16.1 leverages on the competence of the company’s fixed network capabilities. It can offer operators a comprehensive 360-degree view of multi-play and fixed-line customer experience. Ericsson Expert Analytics can perform a host of critical customer experience functions, including the prediction of customer satisfaction, finding experience issues, detecting problems and taking steps to resolve them.
OSS & BSS Business: A Catalyst
The revamped software from Ericsson will empower fixed and mobile operators to converge for good. This will, eventually, help them meet customer demands for bundled mobile, fixed and video services. As operators have been increasingly incorporating video and other forms of rich media, Ericsson believes that its offering will enjoy steady market traction. The company’s Operational Support Systems (“OSS”) and (Business Support Systems (“BSS”) combines business, IT and network capabilities, which assists operators in rolling out novel offerings for better customer experience.
Ever since the Telcordia buyout in the first half of 2014, the company has fortified its foothold in the OSS and BSS segment. Also, it had entered into partnerships with Cisco Systems, Inc. (CSCO - Free Report) and Tektronix Communications to boost its position in this market. Ericsson believes that its increased focus on customer satisfaction will compel operators to enhance their OSS and BSS solutions which bode well for growth. We perceive that the solid performance of these peripheral businesses will bolster Ericsson’s strength.
Macroeconomic Headwinds Hurting Prospects
Reduced consumer telecom spending, including the delayed spectrum auction, is playing a spoilsport for Ericsson. The company’s mobile broadband sales continue to take a beating from the soft macroeconomic environment and weakness in countries like Brazil, Russia and the Middle East. Moreover, the company has been facing investment headwinds in network developments in the Mediterranean, Northern Europe and Central Asia (especially Russia) regions as well as in Latin America and the Middle East.
Additionally, given that the company derives a major portion of its revenues in various foreign currencies, it is prone to negative impacts from currency fluctuation. During second-quarter 2016, weakening currencies across some of the major Latin America markets and floating of the Nigerian currency were major dampeners for the company. Further, stiff competition from peers, prolonged weakness in key end-markets and ongoing industry consolidation among customers & major rivals are adding to this Zacks Rank #4 (Sell) company’s woes.
Stocks to Consider
Some better-ranked stocks in the same space include Ubiquiti Networks, Inc. (UBNT - Free Report) and Motorola Solutions, Inc. (MSI - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Networking products and solutions provider Ubiquiti Networks has an excellent earnings surprise history, beating estimates each time, over the trailing four quarters. It has a positive average surprise of 13.2%.
Motorola Solutions is engaged in providing communication equipments, software and services. The company has a striking earnings surprise history over the trailing four quarters, having beaten estimates all through, for an impressive average beat of 16.4%.
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