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Keysight Inks Deal With SoftBank, Accelerates 5G Deployment

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Keysight Technologies, Inc.’s (KEYS - Free Report) 5G test and design solutions were recently selected by SoftBank, a Japanese mobile operator.

SoftBank has deployed Keysight’s robust 5G new radio (NR) UXM-based network emulation solutions. Notably, Keysight’s 5G network emulation solutions facilitate end-to-end processes from development to deployment, accelerating the 5G device architecture. The solutions offer cost-efficient test techniques with high flexibility and control capabilities. Moreover, the company’s 5G network emulation solutions are deployed on UXM 5G Wireless Test Platform which is 3GPP Release 15 compliant.

This deal bodes well for SoftBank as the new 5G mobile devices in over-the-air (OTA) test capabilities enables mobile operators to tackle new technical challenges and accelerate the deployment of 5G technology across sub-6GHz and mmWave frequencies.

Further, Keysight offers comprehensive Layer 1–7 test, deep network and precision measurement visibility solutions to ensure a minimal risk in development of 5G-based technologies. SoftBank will leverage 5G test solutions of Keysight, in a bid to advance the development and validation of its feature 5G network, consequently accelerating time-to-market.

According to Kailash Narayanan, vice president of Keysight’s wireless test group, "Keysight is pleased to help leading mobile operators like SoftBank meet their strategic goals to commercialize 5G."

Mobile operators worldwide deploy Keysight’s 5G network emulation solutions as part of their mobile device acceptance plans.We believe adoption of the company’s 5G testing and design solutions is anticipated to bolster top-line growth. Moreover, the new customer wins are expected to aid the company in expanding presence in Japan.

Notably, shares of the Keysight have gained 48.9% on a year-over-year basis, substantially outperforming the industry’s rally of 27.2%.

Robust 5G Trends: Key Catalyst

Per ResearchAndMarkets data, global 5G market is expected to reach $251 billion by 2025, at a CAGR of around 97% from 2020. Further, per MarketsandMarkets estimates, communication test and measurement market is projected to attain a valuation of $6.69-billion by 2020 at a CAGR of 9.3% from approximately $4.28 billion in 2015.

Intensive infrastructure investments in 5G push and positive trial testing results are tailwinds in this regard. Smart connected homes, hospitals, factories and cities along with self-driving vehicles remain key beneficiaries of 5G.

Backed by these aforementioned factors, we believe Keysight is well-poised to capitalize on the ongoing upbeat trends in the 5G market and strengthen its competitive position in the domain.

Zacks Rank & Other Key Picks

Currently, Keysight sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the broader technology sector are STMicroelectronics N.V. (STM - Free Report) , Marvell Technology Group Ltd. (MRVL - Free Report) and Twitter, Inc. (TWTR - Free Report) , all flaunting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for STMicroelectronics, Marvell and Twitter is currently pegged at 5%, 9.4% and 22.1%, respectively.

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