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AT&T (T) Collaborates with Ericsson to Conduct 5G Trials

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Telecom behemoth AT&T Inc. (T - Free Report) has initiated next-gen 5G technology trials in partnership with Ericsson (ERIC - Free Report) using the millimeter wavelength technology. The trial was carried out in Intel Corp.’s (INTC - Free Report) Austin office. In February this year, AT&T had decided to execute 5G field tests after rival Verizon Communications Inc.’s (VZ - Free Report) announcement to carry out 5G trials.

The Trial

AT&T has collaborated with Ericsson to conduct its first ever 5G public demo. The test also featured online video streaming at 4K resolution as well and real time camera feeds. Going forward, AT&T and Ericsson will test 5G Voice over Inter Protocol (VoIP) services using 15 Giga-Hertz (GHz) and 28GHz spectrum bands.

Advantages of 5G

The next-gen 5G network will provide 50 times the throughput of the currently available standard 4G LTE network. Latency period of data delivery will be in single milliseconds. Further, 5G technology is designed to be more power efficient than any other standard wireless networks available these days.

Therefore, 5G-enabled mobile devices are likely to last longer than their 3G or 4G counterparts. Moreover, superfast 5G mobile networks will be of utmost importance for the management of the exponential growth in Internet-connected devices, popularly known as Internet of Things (IoT).

Price Performance of AT&T

Year to date, the Zacks categorized U.S. wireless industry has registered growth of 14.78%. However, AT&T’s 14.36% has lags the industry mark.

AT&T is gradually diversifying its business model into Internet TV, digital mobile platform and highly lucrative mobile advertising segments.

AT&T currently carries Zacks Rank #3 (Hold).

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