BMW, Vodafone and Ericsson Appeal to EU for 5G Car Standard
Per Reuters, BMW, Vodafone Group Plc VOD and Ericsson ERIC have recently urged the European Commission to consider the use of 5G technology in cars. The step is a culmination of their concerns about the EU executive’s preference for a Wi-Fi-based technology being used by their competitors.
In a joint statement, the companies lamented that just after two years, the principle of technological neutrality were apparently not adhered to by the European Commission. They added that it was crucial for the industry to have the freedom to adopt a range of technologies for Internet-connected cars in a sector estimated to be worth billions of euros annually. Interestingly, their comments followed a similar push by trade groups GSMA and ETNO and 5GAA last week through a letter to all 28 EU countries.
The Commission is looking to legislation to accelerate the rollout of connected cars and boost collaboration among manufacturers. The latest draft of the proposed rules is believed to pave the way for cars equipped with Wi-Fi called ITS-G5 to hit the roads in Europe. Self-driving vehicles are one of the technologies that will be unlocked by 5G. Also, virtual and augmented reality, smart cities and artificial intelligence are on the cusp of major breakthroughs.
BMW, Vodafone and Ericsson support the alternative 5G standard called C-V2X, putting them in the same group as Ford Motor Company F, Deutsche Telekom, Huawei, Intel and QUALCOMM Incorporated QCOM. They cited the advantages of C-V2X and the fact that this technology was gaining ground in China and the United States. The Commission is now seeking feedback from internal units before it puts the proposal to EU countries and lawmakers. It is expected to adopt the legislation next year.
Ericsson is investing in its 5G-ready portfolio to enable customers to seamlessly migrate to 5G. The company maintains strong control of its cost position to stay competitive. It is investing significantly for commercial deployment of 5G across the globe. Artificial intelligence and automation are key enablers for Ericsson’s future business development. The stock currently sports a Zacks Rank #1 (Strong Buy) and has returned 39.3% on an average compared with 3.8% growth recorded by the industry in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Vodafone currently has a Zacks Rank #4 (Sell) and a long-term earnings growth expectation of 8.6%.
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