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Verizon, Ericsson to Bring Cloud Native Tech in Live Network

Zacks Equity Research

Verizon Communications Inc. VZ, together with Ericsson ERIC recently introduced a cloud native technology on the core of its network, in a proof-of-concept trial.

Markedly, this trial represents the world’s first container-based wireless Evolved Packet Core technology deployment in a live network. The solution will likely increase agility and enable deployment at scale for new services in 4G and 5G.

The trial took place in Hillsboro, OR and the deployment was conducted on Verizon’s commercial network, using Ericsson Packet Core Controller deployed as a cloud-native and microservice-based Mobility Management Entity in an existing pool.

Further, Ericsson is leading the industry to drive cloud-native design in order to bring the agility needed to manage workloads dynamically at the edge required for many new 5G use cases.

With one of the most efficient wireless networks in the United States, Verizon continues to deploy the latest 4G LTE Advanced technologies to deliver faster peak data speeds and capacity for customers, driven by customer-focused planning, disciplined engineering and constant strategic investments.

Verizon has been aggressively forging ahead to expand its fiber optics networks to support 4G LTE and impending 5G wireless standards. By evolving its core network using virtualized machines, the company is facilitating advanced levels of operational automation, flexibility and adaptability.

Moreover, cutting-edge capabilities of 4G LTE and the high speed, increased bandwidth and low latency of 5G will help develop a wide variety of new use cases. Verizon is likely to benefit immensely from the launch of the 5G Ultra Wideband network. The company is focusing to increase the tally of 5G Ultra Wideband mobility to 30 cities in 2019.

Verizon has long-term earnings growth expectation of 4.3%. Driven by healthy traction in the wireless business, the stock has rallied 12% compared with the industry’s growth of 9.5% in the past year.

Verizon currently carries a Zacks Rank #2 (Buy). A couple of other top-ranked stocks in the industry include U.S. Cellular Corp. USM, sporting a Zacks Rank #1 (Strong Buy) and T-Mobile US, Inc. TMUS, carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

U.S. Cellular surpassed earnings estimates in each of the trailing four quarters, the average positive surprise being 79.3%.

T-Mobile has long-term earnings growth expectation of 13%.

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Ericsson (ERIC) : Free Stock Analysis Report
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