Ericsson & SK Telecom Conduct Multi-Vehicular 5G Trials

Telefonaktiebolaget LM Ericsson (ST:ERICAs) (publ) (NASDAQ:ERIC) , in conjunction with SK Telecom and BMW, successfully conducted an advanced 5G outdoor mobility trial, which included the first multi-vehicular 5G trials.

The trial was carried out on a 5G test network installed at the advanced BMW car test track in South Korea. Ericsson and SK Telecom have deployed network slicing and 5G radio network infrastructure to cover an entire track in the BMW driving center. The trial of 5G-based connected cars demonstrated that 5G performance will support V2X (Vehicular Connectivity) services that call for consistent high bi-directional throughput and low latency.

The test environment leveraged on Ericsson’s 5G field trial network, and comprised multiple radio transmission points and one-user equipment installed in every car. The trial opens the possibilities of multiple connected car use cases, such as augmented and virtual reality, obstacle control and vehicle to vehicle communication.

The trial demonstrates new key 5G capabilities with multi-site, multi-transmission point, MU-MIMO and with multiple devices operating in the millimeter wave frequency band. It implemented beam tracking and beam mobility at high mobility between different 5G access points.

Touted as the next generation of mobile technology, 5G has achieved rapid momentum over the past year. 5G networks have the capability to radically lessen latency, accelerate download and upload speeds, enhance network reliability and spectral efficiency. Also, they have the potential to support IoT development by considerably escalating the number of devices that can connect to the network simultaneously.

ERICSSON LM ADR Price and Consensus

According to a research by Ovum, global 5G subscriptions are projected to reach 24 million by 2021, with Asia-Pacific having a 40% share and Europe accounting for 10%.

Ericsson continues to aggressively drive progress in 5G technology and is engaged in multiple trial engagements with different operators across the world.

Ericsson has already signed significant 5G agreements with telecom biggies like Vodafone (LON:VOD) Group (NASDAQ:VOD) , Telefonica (MC:TEF) and Qualcomm Inc. (NASDAQ:QCOM) to bank upon the commercialization of 5G technology. We believe that strategic partnerships, dominant market share and favorable industry trends will help the company benefit significantly from the impending commercialization of the networks.

However, Ericsson faces stiff competition from Huawei Technologies Co. and Nokia (HE:NOKIA) Corporation. Slumping demand in Russia and Brazil, and accelerating negative industry trends have further compounded its problems.

Whether the growth and cost-streamlining efforts of this Zacks Rank #4 (Sell) company will help it beat industry-wide demand blues, remains to be seen.

Stocks to Consider

A better-ranked stock in the same space is Harris Corporation (NYSE:HRS) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Harris Corporation is an international company focused on communications equipment for voice, data and video applications. The company has an impressive earnings surprise history for the trailing four quarters, beating estimates all through for an average of 4.2%.

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