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Ericsson to Drive Digital Transformation for Claro Colombia

CSCO ERIC NOK HRS

Trades from $3

Telefonaktiebolaget LM Ericsson (publ) (ERIC - Free Report) has been chosen by Claro Colombia for transforming its legacy OSS/BSS architecture.

Claro Colombia is a fully owned subsidiary of América Móvil. The deployment of Ericsson’s OSS/BSS solutions will empower Claro Colombia to automate and optimize back-office functions. It will also provide 360-degree subscriber views to customer service representatives.

Further, the makeover will streamline end-to-end business processes, drive faster service rollout and improve customer experience for over 27 million subscribers. Acting as the prime integrator, Ericsson will completely modernize the IT architecture and drive end-to-end business process transformation for Claro Colombia.

This will push Claro Colombia toward becoming a digital operator, with simplified business processes and improved execution.

To keep up with changing customer preferences and dynamic demand, operators need to continuously improve customer experiences, explore new revenue streams, and drive business efficiencies. Ericsson’s solutions allow operators to rise to these challenges with a comprehensive, unified OSS and BSS product suite, in addition to first-rate consulting, managed services and systems integration capabilities.

ERICSSON LM ADR Price and Consensus

Of late, Ericsson has been grappling with slumping demand in Russia and Brazil, and accelerating negative industry trends have further compounded its problems. Further, the company is facing stiff competition from Huawei Technologies Co. and Nokia Corp. (NOK - Free Report) . To combat such critical industry concerns, Ericsson recently struck a partnership with Cisco Systems Inc. (CSCO - Free Report) , to boost its product line up and sell more complete networks. Ericsson expects that the deal would generate $1 billion or more in annual sales for each company by 2018.

Whether the recent growth and cost-streamlining efforts of this Zacks Rank #4 (Sell) company will help it beat industry-wide demand blues, remains to be seen.

Stocks to Consider

A better-ranked stock in the same space is Harris Corporation (HRS - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Harris Corporation is an international company, focused on communications equipment for voice, data and video applications. The company has an impressive earnings surprise history for the trailing four quarters, beating estimates all through, for an average of 4.2%.

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