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Ericsson (ERIC) Inks Five-Year 5G Deal With Ooredoo Group

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Ericsson (ERIC - Free Report) has strengthened its long-standing partnership with Ooredoo Group by inking a five-year agreement with it for the supply of 5G radio, core and transport products and solutions. Ericsson currently has 77 live 5G networks in 40 countries and 122 commercial 5G agreements with service providers.

This agreement covers all 10 of the Group’s operating companies in Qatar, Indonesia, Algeria, Iraq, Kuwait, Oman, Palestine, Tunisia, Myanmar and Maldives. The deal includes Ericsson Radio System, Ericsson Cloud Core, Cloud Infrastructure and Ericsson Cloud Communication solutions.

Ericsson Radio System enables operators to experience a smooth and cost-effective migration from 4G to 5G. The industry-leading portfolio is already deployed in several of Ooredoo’s operating companies. In Ooredoo Qatar’s network, Ericsson Radio System has facilitated a fast nationwide 5G coverage.

In this project, Ericsson will deliver a comprehensive portfolio of telecom services. It will provide hardware and software expansions of the core network, radio network and transmission network. These solutions are likely to boost Ooredoo’s network performance to meet the increasing demands of consumers and businesses.

5G will accelerate Ooredoo’s journey toward digital transformation. Ericsson’s 5G products and solutions will help Ooredoo launch new functionalities with faster time-to-market. Also, the Sweden-based telecom equipment provider will offer support and maintenance services.

Investments in research and development have established Ericsson as a leader in 5G network technology. The company is positive on the long-term outlook. The acquisition of Cradlepoint has strengthened its ability to grow in the 5G enterprise market.

Ericsson has a long-term (three to five years) earnings growth expectation of 28.9% compared with 13.8% of the industry. The stock has gained 35.1% compared with the industry’s growth of 38.3% in the past year.



Ericsson currently has a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader industry are Corning (GLW - Free Report) , Viavi Solutions (VIAV - Free Report) and Vocera Communications , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Corning delivered a trailing four-quarter positive earnings surprise of 40.7%, on average.

Viavi delivered a trailing four-quarter positive earnings surprise of 20.2%, on average.

Vocera delivered a trailing four-quarter positive earnings surprise of 95.1%, on average. The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters.

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