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U.S. Cellular and Ericsson Complete 5G Trials in Wisconsin
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United StatesCellular Corp. (USM - Free Report) , a subsidiary of Telephone & Data Systems Inc. (TDS - Free Report) , recently conducted joint 5G trials with Ericsson (ERIC - Free Report) in Madison, WI. At the trial, the companies showcased enhanced bandwidth and ultra-fast speeds of 5G networks. The companies achieved peak speeds of 9Gbps at a distance of 787 feet and 1.5Gbps at a distance of one mile in the trial.
The innovative 5G technology trial showcased Ericsson's strength in 5G and is expected to open up more opportunities to bring 5G services to the North American market.
Ericsson installed 5G radios on a tower that is currently being used for commercial service by U.S. Cellular. The trial was conducted using 15 GHz spectrum through an experimental license from U.S. telecom regulator, Federal Communications Commission (FCC). The tests were carried out in a variety of environmental conditions to replicate real world usage. The tests evaluated a number of new radio access (NX) carrier combinations to verify their benefits to network throughput and performance.
The companies also revealed that the tests included next-generation technologies and strategies, such as radio resource sharing, beamforming, beam tracking, peak throughput and multiuser MIMO.
U.S. Cellular is optimistic about its collaboration with Ericsson. Together, the companies are expected to improve standards for a healthy 5G ecosystem to better serve their customers with the latest technology to enhance their lives or businesses. The companies also target a fast, high-quality network that works whenever and wherever needed. Hence, the companies look forward to the outcome of the 5G trials.
We note that on Dec 7,Telecom behemoth AT&T Inc. (T - Free Report) initiated next-gen 5G technology trials in partnership with Ericsson using the millimeter wavelength technology. The trial was carried out in Intel Corp.’s (INTC - Free Report) Austin office. This February, AT&T decided to execute 5G field tests after rival Verizon Communications Inc. (VZ - Free Report) made a similar announcement.
We expect U.S. Cellular and Ericsson to continue working together to further develop the 5G technology in sync with their business requirements.
Conclusion
We are impressed with U.S. Cellular’s strategies like the introduction of a new billing system, continuous rollout of 4G LTE, enhancement of LTE handsets, completion of various spectrum transactions and monetization of non-strategic assets. These business moves might help the company increase subscriber base and arrest churn.
In spite of these efforts, shares of U.S. Cellular have underperformed the Zacks categorized Wireless National industry on a year-to-date basis. The stock has gained 4.88% but lagged the industry’s growth of 21.55% over the same period.
We believe the underperformance of the stock price reflects highly competitive nature of the U.S. wireless industry, which is witnessing cut-throat pricing competition at present. Hence, the company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
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U.S. Cellular and Ericsson Complete 5G Trials in Wisconsin
United StatesCellular Corp. (USM - Free Report) , a subsidiary of Telephone & Data Systems Inc. (TDS - Free Report) , recently conducted joint 5G trials with Ericsson (ERIC - Free Report) in Madison, WI. At the trial, the companies showcased enhanced bandwidth and ultra-fast speeds of 5G networks. The companies achieved peak speeds of 9Gbps at a distance of 787 feet and 1.5Gbps at a distance of one mile in the trial.
The innovative 5G technology trial showcased Ericsson's strength in 5G and is expected to open up more opportunities to bring 5G services to the North American market.
Ericsson installed 5G radios on a tower that is currently being used for commercial service by U.S. Cellular. The trial was conducted using 15 GHz spectrum through an experimental license from U.S. telecom regulator, Federal Communications Commission (FCC). The tests were carried out in a variety of environmental conditions to replicate real world usage. The tests evaluated a number of new radio access (NX) carrier combinations to verify their benefits to network throughput and performance.
The companies also revealed that the tests included next-generation technologies and strategies, such as radio resource sharing, beamforming, beam tracking, peak throughput and multiuser MIMO.
U.S. Cellular is optimistic about its collaboration with Ericsson. Together, the companies are expected to improve standards for a healthy 5G ecosystem to better serve their customers with the latest technology to enhance their lives or businesses. The companies also target a fast, high-quality network that works whenever and wherever needed. Hence, the companies look forward to the outcome of the 5G trials.
We note that on Dec 7,Telecom behemoth AT&T Inc. (T - Free Report) initiated next-gen 5G technology trials in partnership with Ericsson using the millimeter wavelength technology. The trial was carried out in Intel Corp.’s (INTC - Free Report) Austin office. This February, AT&T decided to execute 5G field tests after rival Verizon Communications Inc. (VZ - Free Report) made a similar announcement.
We expect U.S. Cellular and Ericsson to continue working together to further develop the 5G technology in sync with their business requirements.
Conclusion
We are impressed with U.S. Cellular’s strategies like the introduction of a new billing system, continuous rollout of 4G LTE, enhancement of LTE handsets, completion of various spectrum transactions and monetization of non-strategic assets. These business moves might help the company increase subscriber base and arrest churn.
In spite of these efforts, shares of U.S. Cellular have underperformed the Zacks categorized Wireless National industry on a year-to-date basis. The stock has gained 4.88% but lagged the industry’s growth of 21.55% over the same period.
We believe the underperformance of the stock price reflects highly competitive nature of the U.S. wireless industry, which is witnessing cut-throat pricing competition at present. Hence, the company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>