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Ericsson's New Solution to Cut Network Build Time by Half

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Telefonaktiebolaget LM Ericsson (publ) (ERIC - Free Report) has launched Accelerated Network Build, a new solution to streamline and accelerate the network build process for operators.

Fast conversion of product idea to revenue and minimal costs are a critical need in this industry. Rapidly evolving technology renders these processes even more complex. Ericsson has come up with this Accelerated Network Build solution in time to address such issues in infrastructure deployment model, before the Internet of Things and 5G development takes hold.

Talking about the new solution, it delivers higher speed by reducing build time by 50%, improves quality by cutting number of site visits by 70% and enhances predictability with 99% first-time right delivery. Further, it has negligible impact to operators' customers during build out or introducing new technologies, while augmenting coverage and capacity.

Ericsson believes that its solution will revolutionize how networks are built and set a new standard, integrating technology innovation and cloud-based tools with streamlined processes.

Per the recent Ericsson Mobility Report, adoption of 5G subscription is projected to be much faster than the previous generations, and it expects over half a billion 5G subscriptions by 2022 end. Further, the burgeoning market for the Internet of Things (IoT) devices is also set to skyrocket, and is set to cross mobile phones as the biggest category of connected devices by 2018.

These figures clearly reflect the need of operators to build future networks quicker than ever before, without impacting business operations during the process. On the contrary, current methods of network build incorporate lengthy deployments, as they involve multiple handovers between activities and parties.

Ericsson Accelerated Network Build solution is based on a proprietary cloud-based toolkit that delivers streamlined process improvements and a host of technical innovations, thus catering to the ever increasing demands of both operators and their clients.

ERICSSON LM ADR Price and Consensus

Ericsson continues to aggressively drive progress in 5G technology and is involved in multiple engagements with different operators across the world. It has already signed significant 5G agreements with telecom majors like Vodafone Group (VOD - Free Report) , Telefonica and Qualcomm Inc. (QCOM - Free Report) to bank upon the commercialization of 5G technology.

Of late, Ericsson has been grappling with plunge in demand in Russia and Brazil and accelerating negative industry trends have posed challenges. Further, the company is facing stiff competition from Huawei Technologies Co. and Nokia Corp. To combat such critical industry concerns, Ericsson recently struck a partnership with Cisco Systems Inc., 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 improvement and cost streamlining efforts of this Zacks Rank #4 (Sell) company will help it to weather the lackluster demand across the industry, remains to be seen.

Stocks to Consider

A better-ranked stock in the same space is Harris Corp. (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 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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