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Ericsson (ERIC) Ties Up With Telstra for Longest Distance 5G Call

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Ericsson ERIC recently collaborated with Telstra Corporation Limited TLSYY to achieve the milestone of the world’s longest distance 5G call from a commercial mobile site. The successful completion of a 5G Standalone (SA) data call across 113 km is likely to enable the Australia-based carrier to extend its coverage footprint in rural areas to better serve customers.

Notably, 5G networks were mostly deployed in Non-standalone (NSA) mode, wherein 5G network availability was dependent on the underlying LTE network for signaling support. The SA 5G NR software from Ericsson eliminates this 4G dependency by enabling carriers to augment their network capabilities with a simpler architecture. Moreover, it improves network speed and simplifies mobility management with seamless access to wide 5G bands for better user experience.

Ericsson has completed SA 5G interoperability with key ecosystem partners like T-Mobile US, Inc. TMUS and Telstra. The 5G SA call was achieved using this commercial 5G SA network software on Telstra’s 850 MHz spectrum. The successful execution of the 5G data call will facilitate the network operator to overcome Australia’s geographical and demographical challenges and take the next big step in the evolution of the 5G ecosystem to make it more pervasive across the country.

Over the years, Ericsson and Telstra have developed close business tie-ups and worked in unison to build an indigenous enterprise edge cloud solution for use in the latter’s domain. It aims to facilitate consumption-based interfaces between cloud providers and the Telstra network for seamless orchestration, network exposure and service assurance. This is expected to improve the service capabilities of the carrier and enable it to significantly scale traditional wireless network to provide 5G services to varied customers. This, in turn, 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.

Markedly, 5G edge computing services offer the flexibility to better manage data traffic and allow businesses to route application-specific traffic where they need it and where it’s most effective — whether in the cloud, the network or on their premises. Leveraging indigenous software-defined network to enable low-latency, high-bandwidth applications for faster access to data processing, it is likely to transform the way data-intensive images are transferred across the industry on real time basis.

Ericsson is focusing on 5G system development and has undertaken many notable endeavors to position itself for market leadership on 5G. The company believes that standardization of 5G is the cornerstone for digitization of industries and broadband. Ericsson foresees mainstream 4G offerings to give way to 5G technology in the future. The deployment of 5G networks is expected to boost the adoption of IoT devices with technologies like network slicing gaining more prominence.

To date, Ericsson has secured 139 commercial 5G agreements with unique communication service providers, of which 81 are live networks. 5G will likely accelerate the digital transformation in many industries, enabling new use cases in areas such as IoT, automation, transport and Big Data. Such positive industry trends are expected to boost the company’s long-term growth.

The stock has gained 35.7% in the past year compared with the industry’s rise of 46.6%.

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We remain impressed with the focused attempts of this Zacks Rank #3 (Hold) stock. A better-ranked stock in the industry is Nokia Corporation NOK, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Nokia delivered an earnings surprise of 215.2%, on average, in the trailing four quarters.

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Telstra Corp. (TLSYY) : Free Stock Analysis Report

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