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Ericsson (ERIC), Optus Team Up to Advance 5G Capabilities

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Ericsson (ERIC - Free Report) recently joined forces with Optus, one of the leading telecommunications companies in Australia, to conduct a pioneering pilot project that involves enhancing network experience by utilizing Ericsson’s innovative Interference Sensing technology on a live network. Inter-cell interference is caused when signals from neighboring cells in a mobile network interfere with each other. It leads to degraded signal quality, reduced data throughput and lower network capacity. The issue is more prevalent in dense network environments, such as urban areas with a high concentration of users.

With the increasing digital transformation across industries and the high densification of 5G networks, inter-cell interference is going to be a major challenge for telecom enterprises. However, the recent successful demonstration from Ericsson is a major stride towards resolving those issues.

The Interference Sensing technology can dynamically detect and mitigate inter-cell interference in real-time. Ericsson's solution can significantly enhance network capacity by maximizing signal energy for users in the serving cell while avoiding interference for users in adjacent cells. With the advanced functionalities, an average increase in user throughput of around 22% was observed across multiple users and cells in a commercial network deployment.

Ericsson’s Interference Sensing Technology is a commercial-grade software feature that can enhance the capacity of existing Massive MIMO hardware by up to 40% through a simple software upgrade. By incorporating these innovative features prominent telecom service providers like Optus can fully capitalize on the benefits of 5G. It will equip them to deliver a premium data experience to customers and also support various advanced applications such as AR/VR, cloud gaming services and more.

Against the backdrop of the growing 5G traffic load among enterprises and consumers, the Interference Sensing Technology will be a game changer for the telecom industry. These evolving market trends will likely boost prospects for Ericsson’s leading-edge Massive MIMO 5G Advanced portfolio.

The stock has gained 14.86% over the past year compared with the industry’s growth of 41.27%.

Zacks Rank & Stocks to Consider

Ericsson currently carries a Zacks Rank #3 (Hold).

Arista Networks, Inc. (ANET - Free Report) , sporting a Zacks Rank #1 (Strong Buy) 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 15.68% and delivered an earnings surprise of 16.07%, on average, in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.

It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter 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.

Motorola Solutions Inc. (MSI - Free Report) provides services and solutions to government segments and public safety programs, along with large enterprises and wireless infrastructure services. Currently, Motorola carries a Zacks Rank #2 (Buy) at present.

It delivered a trailing four-quarter average earnings surprise of 7.54% and has a long-term growth expectation of 9.47%. In the last reported quarter, Motorola delivered an earnings surprise of 11.51%.

Silicon Motion Technology Corporation (SIMO - Free Report) , sporting a Zacks Rank #1 at present, delivered a trailing four-quarter average earnings surprise of 4.72%.

It is a leading developer of microcontroller ICs for NAND flash storage devices. The semiconductor company also designs, develops and markets high-performance, low-power semiconductor solutions for original equipment manufacturers and other customers.

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