Ericsson (ERIC - Free Report) announced that it has been chosen by TDC — the largest telecommunications company in Denmark — to roll out nationwide commercial 5G as part of the latter’s network overhaul program. Financial terms of the contract were not disclosed. Notably, this Swedish firm has been investing in its competitive 5G-ready portfolio to enable communications service providers to seamlessly migrate to 5G.
Along with R&D innovation, the strengthened partnership is likely to allow TDC to fulfill ‘Digital Denmark’ objectives. This move is likely to empower a digital economy while boosting Denmark’s position as a digital leader by helping mobile broadband subscribers and industries to capitalize on 5G technology, Internet of Things and the fourth industrial revolution. Ericsson will transform TDC’s Radio Access Network with its latest Radio System solutions. TDC’s core network will be modernized, using Ericsson’s dual-mode 5G Cloud Core solution. Ericsson’s investments in R&D over the past years have secured a competitive and industry-leading offering.
Artificial intelligence and automation solutions remain key enablers for Ericsson’s business development. The rollout of Ericsson 5G New Radio hardware and software products is expected to begin in 2019 in accordance with 5G licensing obligations. TDC will offer 5G to selected customers under trial from the middle of 2019, with actual 5G network rollout expected to be initiated in October, subject to the anticipated approval and availability of licensed 5G spectrum. TDC is aiming to provide nationwide 5G coverage in Denmark by the end of 2020. Per the agreement, Ericsson would help upgrade the existing 4G LTE network of TDC.
Additionally, the companies inked a five-year managed services contract, focused on the artificial intelligence and automation-driven Ericsson Operations Engine, which will help this Swedish telecom equipment maker operate TDC’s network from September 2019. Per the deal, nearly 100 professionals from network operations will be transferred to Ericsson. TDC’s subscribers will likely be among the first in Europe to benefit from new 5G-enabled mobile broadband experiences.
Ericsson is actively pursuing three key areas — core business expansion, targeted growth, and cost and efficiency. It continues to execute its strategy and is well on track to achieve 2020 financial targets. It maintains strong control of its cost position to stay competitive and profitable. Driven by diligent execution of operational strategies alongside collaborations with industry frontrunners, shares of Ericsson have rallied 45.5% compared with the industry’s rise of 5.3% over the past year.
Currently, Ericsson has a Zacks Rank #5 (Strong Sell). Some better-ranked stocks in the industry include Ubiquiti Networks, Inc. (UBNT - Free Report) , Harris Corporation (HRS - Free Report) and Motorola Solutions, Inc. (MSI - Free Report) . While Ubiquiti currently sports a Zacks Rank #1 (Strong Buy), Harris and Motorola carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ubiquiti has a long-term earnings growth expectation of 20.4%.
Harris has a long-term earnings growth expectation of 8%.
Motorola has a long-term earnings growth expectation of 8%.
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