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Ericsson Provides Insight on Cost & Carbon Reduction for 5G

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Ericsson (ERIC - Free Report) has released a new report, ‘Breaking the energy curve’, where it underscores a unique network-level approach that enables an exponential growth of data traffic without increasing energy consumption. In this 12-page report, the Swedish telecom gear maker outlines the savings that can be achieved by preparing the network with latest technology solutions, activating energy-saving software, building 5G with precision and operating site infrastructure intelligently.

The company is committed to creating positive impacts on society through its technology, expertise of employees and partnerships. Ericsson integrates sustainability and corporate responsibility into its strategy to drive business transformation and create value for stakeholders. Its solutions help network operators reduce their total cost of ownership while supporting positive social and environmental impacts. The company intends to improve performance across the value chain and differentiate itself from competitors.

Ericsson estimates the annual global energy cost for running mobile networks to be almost $25 billion. On both cost and carbon footprint front, energy is the industry’s one of the biggest challenges. Ericsson, together with leading customers and international organizations, has developed targets for carbon emissions to limit global warming below 1.5°C. Through its extensive research, the company has demonstrated that mobile broadband is an enabler of sustainable development, economic growth and reduced carbon emissions.

Energy consumption is set to increase significantly if 5G is deployed in the same way as 3G and 4G were. Some communication service providers have even projected doubling of their energy consumption to meet increasing traffic demands while boosting their network and 5G rollout. Thanks to the 5G standard and Ericsson’s development efforts, it is now possible to meaningfully reduce energy consumption. 5G will allow the mobile system to use smart sleep modes more effectively and extend coverage by using lower bands while increasing capacity and speed with carrier aggregation.

Fast and effective data transmission enables the system to return to a low-load state faster. The technology company partnered with customers to evaluate and develop solutions to address energy challenges. It has presented a broad range of solutions from its portfolio, which can be implemented to either prepare for or support 5G deployment. Ericsson’s ongoing activities are to invest in R&D to safeguard a leading product portfolio and cost leadership; increase investments in automation and serviceability driving down costs; and selectively gain market shares based on technology and cost competitiveness.

At the end of 2019, Ericsson had 78 commercial 5G agreements with individual operators and 24 live 5G networks around the world. It is on track with its 2020 and 2022 financial targets while making progress toward building a stronger company in the long term.

Shares of Ericsson have lost 21.4% compared with 17.2% decline recorded by the industry in the past three months.



Ericsson currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the industry are PCTEL, Inc. (PCTI - Free Report) , Motorola Solutions, Inc. (MSI - Free Report) and Qualcomm Incorporated (QCOM - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

PCTEL surpassed earnings estimates in the trailing four quarters, the beat being 108.9%, on average.

Motorola topped earnings estimates in the trailing four quarters, the surprise being 6.6%, on average.

Qualcomm surpassed earnings estimates in the trailing four quarters, the beat being 10%, on average.

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