Ericsson ERIC, which boasts a long-standing technological partnership with Vodafone Group Plc VOD, has announced the launch of Vodafone U.K.’s 5G service with unlimited data plans for consumers and business customers. The move emphasizes the Swedish telecom equipment maker’s focus on working closely with service providers in a bid to drive 5G in Europe.
Powered by Ericsson’s leading-edge 5G technology solutions, Vodafone has now switched on its 5G network in seven U.K. cities, including London. Ericsson’s advanced spectrum sharing capabilities will likely allow Vodafone to extend the scope of 5G in its network. With its largest ever capital investment, the mobile operator aims to provide Londoners with an ultra-fast 5G and 4G network without any limit.
Ericsson maintains a leading position in telecommunications innovation and has a strong commitment to R&D. The company has one of the industry’s most intellectual property portfolios, which includes more than 49,000 granted patents worldwide. It is the largest holder of standard essential patents for mobile communication.
The company has been working with operators to help in their network modernization, while optimizing on plenty of growth opportunities. It intends to provide 5G coverage based on its latest Radio System portfolio in London. This comprises Baseband 6630 and Massive MIMO 6488 products to enable 5G on 3.5GHz frequency. When combined with LTE, this will likely achieve speed up to 10 times faster than 4G with lower latency.
In addition, Ericsson continues to focus on 5G system development and has undertaken many notable endeavors to position itself for market leadership. The company’s Radio System’s dynamic spectrum sharing functionality will allow Vodafone to extend 5G coverage across a wide area.
Favorable industry trends are expected to bolster the company’s long-term growth and profitability. Ericsson remains focused on its core business of selling networking equipment with the ramp up of 5G networks.
Driven by diligent execution of operational strategies, shares of Ericsson have rallied 23.9% compared with the industry’s rise of 6.6% in the past year.
Ericsson currently carries a Zacks Rank #2 (Buy). A couple of other top-ranked stocks in the industry include Comtech Telecommunications Corp. CMTL and Ubiquiti Networks, Inc. UBNT, both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Comtech has long-term earnings growth expectation of 5%.
Ubiquiti has long-term earnings growth expectation of 19.8%.
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