Yahoo Finance Ericsson (ERIC) Solution to Help Optimize Energy Consumption
Ericsson's ERIC latest innovation, the Site Energy Orchestration solution, is poised to revolutionize how telecom networks are powered, bringing significant energy savings and operational efficiencies to businesses.
The Site Energy Orchestration solution acts as an intelligent interface between the radio access network (RAN) and power grids. By leveraging machine learning and AI-powered RAN applications, RAN data and external data interfacing, the solution enables communication service providers (CSPs) to cluster and orchestrate network sites as a virtual power plant. This approach allows CSPs to participate in diverse utility plans across markets, optimizing energy use and opening new revenue streams.
The energy crisis, exacerbated by extreme weather conditions, highlights the urgent need for smarter energy grid management. As businesses increasingly rely on electric-powered vehicles and renewables, matching power generation with consumption becomes crucial. Ericsson's solution helps CSPs tackle these challenges by optimizing cell sites' energy consumption patterns to avoid peak charges, channeling energy only when needed and incorporating renewables and energy storage solutions.
According to the 2024 GSMA report, passive infrastructure alone accounts for 29% of global telecom energy consumption, with CSPs spending 10-25% of operational expenditure on energy. Ericsson's solution can significantly reduce these costs. The company’s commercial operations have shown substantial reductions in energy bills through methods like peak shaving, load-shifting and using hybrid energy sources.
Additionally, the solution aids in achieving Net Zero goals by reducing carbon footprints. It balances energy in power grids for network operations, reducing reliance on fuel-based reserve generation plants. This not only cuts costs but also contributes to environmental sustainability.
With a comprehensive portfolio of site power and energy storage solutions, integration capabilities through the RAN Ericsson Network Manager and a robust field presence with nearly 150,000 smart enclosures worldwide, the company is well-positioned to capture market share and drive growth.
Ericsson's Site Energy Orchestration solution is likely to be a game-changer for businesses looking to reduce energy bills and carbon footprint. As energy efficiency becomes increasingly critical, Ericsson's innovative approach offers a practical and impactful solution for the telecom industry and beyond.
The stock has gained 20.8% over the past year compared with the industry’s rise of 45.4%.
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Zacks Rank & Stocks to Consider
Ericsson currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Arista Networks, Inc. ANET, sporting a Zacks Rank #1 at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 15.7% and delivered an earnings surprise of 15.4%, on average, in the trailing four quarters.
It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed data center segment. Arista is increasingly gaining market traction in 200 and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.
Harmonic Inc. HLIT, currently carrying a Zacks Rank #2 (Buy), is another key pick in the broader industry. Headquartered in San Jose, CA, the company provides video delivery software, products, system solutions and services worldwide.
With more than three decades of experience, HLIT has revolutionized cable access networking via the industry's first virtualized cable access solution, enabling cable operators to more flexibly deploy gigabit Internet service to consumers' homes and mobile devices. Harmonic delivered an earnings surprise of 5.6%, on average, in the trailing four quarters.
Motorola Solutions, Inc. MSI, carrying a Zacks Rank #2 at present, delivered an earnings surprise of 7.5%, on average, in the trailing four quarters. It has a long-term earnings growth expectation of 9.5%.
Motorola provides services and solutions to government segments and public safety programs, along with large enterprises and wireless infrastructure service providers. It develops and services both analog and digital two-way radio, voice and data communications products, and systems for private networks, wireless broadband systems and end-to-end enterprise mobility solutions to a wide range of enterprise markets.
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