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Ericsson Extends Telstra's NB-IoT Connection in Australia

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In an attempt to outdo rivals, Ericsson (ERIC - Free Report) recently announced that it has successfully deployed and tested Narrowband Internet of Things (NB-IoT) data connections, together with Telstra Corporation Limited (TLSYY - Free Report) , up to 100 kms from a base-station in the latter’s commercial network. Telstra is a leading Australian telecommunications company, which operates networks and markets voice, mobile and Internet access across the region. The extended deployment is reportedly the longest-range NB-IoT connection and represents a key milestone toward increasing Telstra’s LTE footprint in rural Australia.

NB-IoT is a 3rd Generation Partnership Project (3GPP) radio technology standard that addresses the Low Power Wide Area (LPWA) requirements of IoT. Designed by Ericsson, this latest network infrastructure development extends the 3GPP standards-based limit from around 40 kms to 100 kms and can be activated through software upgrades. Also, it bolsters Telstra’s market position as Australia’s only operator and one of the first globally to offer NB-IoT and Cat M1 technologies in unison.

Ericsson has been driving the standardization of LPWA technologies in 3GPP as a key contributor to cellular IoT technology. The NB-IoT and Long-Term Evolution Machine Type Communications technologies are available today with more than 60 commercial networks launched worldwide. The network equipment manufacturer is much in demand among telecom operators to expand network coverage and upgrade networks for higher speed and capacity. Ericsson is the world’s largest supplier of LTE technology with a significant market share and has established a large number of LTE networks worldwide.

Against this backdrop, the extended-range capability builds on Ericsson’s history of delivering cellular solutions. The partnership would help Telstra provide its customers with world-leading capability in NB-IoT extended range cells and showcase the massive opportunity that IoT holds in rural and regional areas for Australia and globally, particularly for logistics and agriculture. Ericsson remains focused on the core business of selling networking equipment prior to the expected rollout of 5G networks.

Over the past three months, shares of Ericsson have gained 18.6% compared with 15.9% growth for the industry.

Ericsson currently has a Zacks Rank #3 (Hold). Better-ranked stock in the industry include Ribbon Communications Inc. (RBBN - Free Report) and Ubiquiti Networks, Inc. (UBNT - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Ribbon Communications has a long-term earnings growth expectation of 12%. It beat earnings estimates in each of the trailing four quarters, the average surprise being 168.1%.   

Ubiquiti Networks has a long-term earnings growth expectation of 18.6%. It surpassed earnings estimates thrice in the trailing four quarters with an average positive surprise of 9%.      

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