Ericsson ERIC recently announced its collaboration with a leading communications services provider — Chunghwa Telecom Co., Ltd. CHT — to deploy commercial 5G network in Taiwan. As the sole supplier of 5G Core network, the latest move will enable the Sweden-based equipment maker to capitalize on its best-in-class capabilities in wireless core services platform, thereby augmenting its geographical footprint in Asian markets. Markedly, Chunghwa Telecom is the first network operator to launch commercial 5G services in Taiwan. Financial terms of the deal were not disclosed.
Notably, Ericsson’s 5G Core network is considered as the best platform for establishing a streamlined network infrastructure. The 5G core solution supports both 4G and 5G core networks, which enhances network efficiency and automates capacity management, thereby improving user experience for 5G customers. Equipped with an avant-garde service-based architecture, the innovative network solution empowers service providers to minimize operating expenditures, improve performance with automation cloud native design and address new segments with utmost flexibility. Further, the Taiwan-based network operator will also benefit from increased system capacity that will enable effective management of data traffic and reinforce next-gen applications like edge computing and network slicing with simplified operations.
Apart from 5G Core services, Chunghwa Telecom will also capitalize on Ericsson’s 5G Radio Access Network (RAN) for seamless connectivity. Ericsson's 5G New Radio RAN is an integral component of its 5G platform and includes software support for shift from LTE (a 4G mobile communications standard) to NR (a global 5G standard). It offers an industry-leading performance on the smallest site footprint with the lowest energy consumption as networks grow in scale and complexity. The company’s 5G radio access technologies provide the infrastructure required to meet growing demand for high-bandwidth connections and support the real-time, low-latency and high-reliability communication requirements of mission-critical applications. Also, Ericsson deployed 5G non-standalone technology on the frequency bands of 3.5GHz and 2.1GHz for the Taiwan-based network operator.
Ericsson has been sharing an active working relationship with Chunghwa Telecom since 2017. Moreover, the Swedish equipment vendor had been selected by the network operator as the provider of 5G Core services in March 2020. The enhanced 5G network support provided by Ericsson will not only cater to the accretive networking requirements of consumers but also contribute significantly toward the overall progress of 5G development in Taiwan. Apart from deploying the best-in-class broadband services to the consumers, the telecom operator will promote industrial transformation with new 5G-backed applications. These include use cases for smart transportation, smart metering and augmented reality specifically designed for enterprises. The latest collaboration is a perfect example for highlighting Ericsson’s accelerated 5G momentum in Taiwan.
To date, Ericsson has secured 95 commercial 5G agreements with unique communication service providers, of which 42 are live networks. The company is witnessing healthy momentum in its business, based on the strategy to increase investments for technology leadership, including 5G. It expects mainstream 4G offerings to give way to 5G technology in the near future. Ericsson is on track with its 2020 and 2022 financial targets while strengthening business in the long term. It has invested in R&D and supply-chain capacity to increase market share. The company continues to focus on a restructuring plan to cut costs and streamline operations as well as explore options for the media business.
Ericsson currently carries a Zacks Rank #2 (Buy). It has a long-term earnings growth expectation of 26.1%. The stock has gained 20.3% compared with industry’s growth of 31.2% in the past three months.
Some other better-ranked stocks in the industry are PCTEL, Inc. PCTI and Nokia Corporation NOK. While PCTEL sports a Zacks Rank #1 (Strong Buy), Nokia carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
PCTEL’s bottom line surpassed the Zacks Consensus Estimate thrice in the last four quarters. The company has a trailing four-quarter positive earnings surprise of 33.9%, on average.
Nokia’s bottom line surpassed the Zacks Consensus Estimate twice in the last four quarters. The company has a trailing four-quarter positive earnings surprise of 129.1%, on average.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Nokia Corporation (NOK) : Free Stock Analysis Report
Chunghwa Telecom Co., Ltd. (CHT) : Free Stock Analysis Report
Ericsson (ERIC) : Free Stock Analysis Report
PCTEL, Inc. (PCTI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research