Ericsson Deploys Evolved Packet Core Framework In Telstra

Ericsson (NASDAQ:ERIC) recently deployed the industry’s first live cloud-native container-based Evolved Packet Core framework for 4G and 5G services in Telstra Corporation Limited’s (OTC:TLSYY) production Network Functions Virtualization Infrastructure (NFVI). The move will facilitate the carrier to significantly scale traditional wireless networks to provide 5G services to varied customers.

Evolved Packet Core enables converged voice and data services and is likely to help Telstra, a leading telecom and mobile network operator in Australia, to seamlessly offer both the services as the industry transitions to 5G. The NFVI architecture includes all the hardware and software components on which virtual networks are built and helps to increase the interoperability of the components to enable multivendor environments. This, in turn, will empower Telstra to achieve greater orchestration and network automation to deliver services such as enhanced mobile broadband, network slicing, mobile edge computing, mission critical vertical industry support and advanced enterprise services. At the same time, it would help the operator to improve network resilience and upgrade software to increase overall network capabilities.

The step is likely to redefine the way telecom carriers operate across the globe and give rise to more flexible and agile networks to effectively handle the wide proliferation of data and other bandwidth-intensive applications. This, in turn, will equip the operators to offer attractive services to their customers, thereby generating new revenue streams.

Notably, Ericsson has secured more than 75 commercial 5G agreements with unique communication service providers, of which 24 are live networks. The company is increasingly focusing on 5G system development to capitalize on the upcoming market opportunities. The company believes standardization of 5G is the cornerstone for digitization of industries and broadband. Moreover, Ericsson foresees mainstream 4G offerings to give way to 5G technology in the future.

Meanwhile, the impending deployment of 5G networks is expected to boost the adoption of IoT devices, with technologies like network slicing gaining more prominence. Currently, Ericsson is investing in its competitive 5G-ready portfolio to enable customers to seamlessly migrate to 5G. AI and automation remain key enablers for its business development.

The stock has gained 3.7% year to date compared with the industry’s rise of 23.1%.

Ericsson currently has a Zacks Rank #2 (Buy). Other top-ranked stocks in the industry include Qualcomm Incorporated (NASDAQ:QCOM) and Ubiquiti Inc. (NASDAQ:UI) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

Qualcomm has a long-term earnings growth expectation of 14%. It delivered an average positive earnings surprise of 8.7% in the trailing four quarters, beating estimates on each occasion.

Ubiquiti has a long-term earnings growth expectation of 9.4%. It delivered an average positive earnings surprise of 16.1% in the trailing four quarters, beating estimates thrice.

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