AT&T To Include Virtualized RAN Core In 5G Network Trials

U.S. telecom behemoth AT&T Inc. (NYSE:T) is looking forward to include virtualized Radio Access Networks (RAN) core in its trials. With this, the company aims to provide a more efficient wireless network with Total Cost of Ownership (TCO) reduction. AT&T has already initiated its second trial of 5G service with subsidiary DirecTV at more locations in Austin, Texas. It is using millimeter wave technology for this trial.

Virtualizing RAN (vRAN) is the process of separating functions from a traditional remote radio unit to run them as virtualized network functions (VNFs) on commodity hardware. vRAN is designed to reduce operating costs and increase performance and scalability. According to the research firm, SNS Telecom, vRAN deployments will account for a market worth $2.6 billion by 2020.

Millimeter wave spectrum is the band of spectrum between 30 GHz and 300 GHz. It is used for high-speed wireless communications by allocating more bandwidth to deliver faster, higher-quality video, and multimedia content and services.

AT&T is using Ericsson’s (NASDAQ:ERIC) 5G RAN and Intel Corporation’s (NYSE:T) 5G mobile trial platform in the Austin trial. With its help, the company wants to provide ultra-fast internet connection to residential, small business and enterprise customers.

Besides experimenting with virtualized radio access network (vRAN) technologies, the company is also looking forward to including greater use of software defined networking (SDN). AT&T is conducting these trials with an aim to have 75% of its traffic on a software-defined network by 2020.

Meanwhile, the company is forging ahead in the Internet of Things (IoT) space with its strategic partnerships and initiatives. The move should allow it to boost the performance of its enterprise segment and also enhance service offerings. In the middle of Mar 2017, AT&T announced its plans to offer standard-based mobile 5G services to consumers from late 2018. This came up on the back of 3^rd Generation Partnership Project's (3GPP) decision to accelerate some elements in the 5G New Radio (NR) specification.

Rival firm, Verizon Communications Inc. (NYSE:VZ) , is also planning to implement virtualized RAN technologies to increase the efficiency of its wireless network design as well as save money. Ericsson (BS:ERICAs) is participating in Verizon’s tests and deployments of the vRAN technology.

Price Performance and Rank:

Over the past three months, the AT&T stock contracted 9.05% while the Zacks classified Wireless National industry declined 6.94 %. AT&T currently carries Zacks rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively. And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>