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Ericsson (ERIC) Achieves 5G Interactive Calling With Partners

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In collaboration with its partners, Ericsson ERIC has achieved a proof-of-concept for 5G interactive calling to spearhead innovation in the multimedia communication system. The feat is likely to sow the seeds of a new 5G 3GPP-standards-based technology, which could be used for various real-time interactive voice services in the future.

The project was led by Telefónica, S.A. TEF and was implemented by Samsung in its Galaxy S21 series. It demonstrated the commercial feasibility of remote interactive services for enabling communication service providers to offer more than just a basic 5G voice calling service. With access to screen sharing, gaming and social collaboration within a regular phone call, it will offer consumers an unmatched digital experience across consumer-to-business and business-to-business communications.

Telefonica and Ericsson have long shared a common vision of offering an integrated 5G service with sharing capabilities within high-quality voice calls, eliminating the need for separate apps and reducing data intrusion risks. Both the companies had worked in unison to develop a 3GPP-standardized technology enabler, IMS (IP Multimedia Subsystem) data channel, which enables secure and reliable multimedia communications between various devices across diverse networks.

The technology leverages a generic 5G voice technology for offering an interactive experience on 5G smartphone native call screens. The IMS data channel is handled like any other media stream in the call – in parallel to voice and optional video calling media for real-time interaction. The proof-of-concept utilized Ericsson IMS system comprising both virtual and cloud-native network functions to deliver rich real-time communication services for both consumer and business users over any access network, for any device type, including smartphones, tablets, wearables, laptops and fixed-line phones.

With the emergence of the smartphone market and the subsequent usage of mobile broadband, user demand for coverage speed and quality has increased exponentially. Further, to maintain performance with increased traffic, there is a continuous need for network tuning and optimization. Ericsson, one of the premier telecom service providers, is in demand among operators to expand network coverage and upgrade networks for higher speed and capacity. The company is reportedly the world’s largest supplier of LTE technology with a significant market share and has established a large number of LTE networks worldwide.

Ericsson is focusing on 5G system development and has undertaken many notable endeavors to position itself for market leadership on 5G. The company believes that the standardization of 5G is the cornerstone for digitizing industries and broadband. Ericsson foresees mainstream 4G offerings to give way to 5G technology in the future. The deployment of 5G networks is expected to boost the adoption of IoT devices, with technologies like network slicing gaining more prominence.

The stock has lost 20.9% over the past year against the industry’s rise of 10.7%. Nevertheless, we remain impressed with the inherent growth potential of this Zacks Rank #3 (Hold) stock.

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A better-ranked stock in the industry is Clearfield, Inc. CLFD, sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Clearfield delivered an earnings surprise of 50.7%, on average, in the trailing four quarters. Earnings estimates for the current year for the stock have moved up 68.2% since January 2021. Over the past year, Clearfield has gained a solid 81.1%.

Sierra Wireless, Inc. SWIR carries a Zacks Rank #2 (Buy). It has a long-term earnings growth expectation of 12.5% and delivered an earnings surprise of 58%, on average, in the trailing four quarters.

Over the past year, Sierra Wireless has gained 5.2%. The company continues to launch innovative products for business-critical operations that require high security and optimum 5G performance.

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