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Ericsson to Run 600 MHz Spectrum Trial with Local Carriers

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With an aim to develop wireless services in rural America, Ericsson (ERIC - Free Report) recently announced that it will conduct 4G LTE trial using 600 MHz of spectrum, together with Agri-Valley Services and NewCore Wireless, in the beginning of fourth-quarter 2018. Agri-Valley Services is a broadband Internet service provider primarily serving Huron, Tuscola and Sanilac counties in Michigan.

Headquartered in St. Cloud, MN, NewCore Wireless is a leading wireless switching provider offering solutions to carriers. Notably, the trial, which will take place in Caro, MI, represents the first-of-its-kind with a regional carrier in the United States.

The 600 MHz low-band spectrum allows operators to extend coverage by utilizing low band radio wave propagation, resulting in more coverage per cell site in rural areas. This paves the way for a more competitive and better choice of wireless service for rural customers.

Ericsson believes that the success of this trial will be a major step forward to offering 600 MHz 4G LTE coverage to its rural customers on existing network infrastructure. It will also provide more options to customers who want to choose fixed wireless access solutions.

The defining partnership aims to explore newer technologies and advance networks to make high-speed Internet available to consumers, communities and enterprises with enhanced wireless services in rural areas. 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.

The Swedish firm seeks to capitalize on business opportunities as operators shift toward 4G deployments and prepare grounds for the upcoming 5G superfast networks. The company is focusing on 5G system developments to maintain its market leadership position. It believes that standardization of 5G is the cornerstone for digitization of industries and broadband. Furthermore, the company plans to accelerate its planned cost cuts and efficiency measures to improve margins.

Over the past three months, shares of Ericsson have gained 16.8% compared with 17.5% growth recorded by the industry.

Ericsson currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include Comtech Telecommunications Corp. (CMTL - Free Report) , Ubiquiti Networks, Inc. (UBNT - Free Report) and Motorola Solutions, Inc. (MSI - Free Report) . While Comtech and Ubiquiti sport a Zacks Rank #1 (Strong Buy), Motorola carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Comtech has beaten earnings estimates in each of the trailing four quarters, the average surprise being 136%.    

Ubiquiti 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%.

Motorola has a long-term earnings growth expectation of 9.6%. It beat earnings estimates in each of the trailing four quarters, the average surprise being 11.8%.   

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