Verizon Communications Inc. (VZ - Free Report) recently collaborated with leading tech behemoths — Qualcomm Incorporated (QCOM - Free Report) and Ericsson (ERIC - Free Report) — to demonstrate the feasibility of next-gen networking technology Dynamic Spectrum Sharing (DSS). The networking solution is based on an innovative cost-effective technology that enables optimal performance with seamless interchange of networking infrastructure between 4G and 5G devices based on traffic demand, thereby minimizing spectrum waste.
The DSS strategy revolutionizes the introduction of new 5G technologies that allows the deployment of both 4G and 5G in the same band and proactively allocates spectrum resources between them, based on user demand. The combination of faster commercialization and low investment requirements has made spectrum sharing an essential part of the operator’s 5G strategies.
The test data call was conducted using Ericsson's lab and Qualcomm's Snapdragon 5G mobile platform. The pilot test was executed to ensure that 5G could run on Verizon's 4G LTE spectrum by using effective millimeter wave bands. The shorter wavelength of the millimeter wave bands ensures a higher data transmission capacity than 4G, thereby complementing Verizon’s 5G Ultra Wideband service.
With DSS, Verizon will provide Ultra Wideband network services in areas that utilize 4G spectrum to drive 5G signal, delivering the added benefit of a faster network rollout. This translates into smooth and fast transfer of data within latency-resistant network. Verizon has upped the ante against its rivals by launching 5G Ultra Wideband mobility service in multiple cities.
Markedly, Verizon has systematically invested in 5G technology to gain a foothold in the industry. The company expects to capitalize on the impending 5G boom and outsmart competition. Further, its focus on upgrading the 5G network will result in the enhancement of Ultra Wideband speed, network performance and latency. Customers availing the company’s 5G service and 5G-enabled smartphone will enjoy faster download speed while automatically shifting to 4G LTE network once they move outside the 5G coverage area.
With one of the most efficient wireless networks in the United States, Verizon continues to deploy the latest 4G LTE Advanced technologies to deliver faster peak data speeds and capacity for customers, backed by customer-focused planning, disciplined engineering and constant strategic investments. The telecom bellwether aims to continue its lead in promulgating next-gen 5G mobile networks nationwide by using virtualized machines, advanced levels of operational automation, flexibility and adaptability, which is likely to strengthen Verizon’s market position and enhance revenues.
Verizon has long-term earnings growth expectation of 4.2%. Driven by healthy traction in the wireless business, the stock has gained 5.7% compared with the industry’s growth of 17% in the year-to-date period.
Verizon currently carries a Zacks Rank #2 (Buy).
Another top-ranked stock in the broader industry is Ubiquiti Inc. (UI - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ubiquiti surpassed the consensus estimates thrice in the preceding four quarters, the average positive earnings surprise being 16.1%.
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