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Ericsson (ERIC), Vodafone Team Up to Deploy 5G Antenna in Germany

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Ericsson (ERIC - Free Report) recently announced that Vodafone has opted to deploy Ericsson’s Interleaved AIR 3218 antenna solution to expand 5G coverage in Germany. With the first antenna system already deployed at a multi-story car park in Dusseldorf, ERIC aims to install more than 500 systems across the country by the end of 2026.

Germany is witnessing an increase in data traffic of more than 30% annually. By integrating Ericsson’s innovative solution, Vodafone is aiming to accommodate this growing data demand. However, the company is facing challenges in finding suitable locations for antenna installations due to limited rooftop space. Moreover, the available ones do not match the static criteria of network planners.

Antennas mounted on rooftops are exposed to wind forces which put pressure on their surfaces. As more mobile phone antennas are installed, the increased number will amplify the wind load and consequently raise the pressure exerted on the surface. Many of the rooftop lacks structural integrity and wind resistance capability and hence cannot be upgraded with active 5G antennas.

Ericsson’s new compact antenna solution effectively addresses these issues. In Ericsson’s design, the active antenna is installed behind the passive antenna, reducing the overall space required on the mast or rooftop. Antenna-integrated radio and multiband passive antenna technology are nested together in one solution, minimizing the physical footprint. This ensures the expansion of 5G network capacity and coverage without any additional site footprint.

The Interleaved AIR 3218 is a great solution for highly congested urban areas where 5G deployment is affected by building regulations, planning laws and structural issues. The solution supports high data rates of more than one gigabit per second and can cover a radius of up to one kilometer, ensuring effective 5G coverage in city centers. The compact active-passive design simplifies the site upgradation process. The solutions support frequencies through the low and mid-band range, boost capacity and deliver premium service to end users.

Along with addressing the technical challenges of 5G expansion in urban areas, the solution also focuses on improving the operational efficiency of service providers. These factors will likely contribute positively in Ericsson’s commercial prospect and boost its competitive edge in the wireless equipment industry.

The stock has gained 16.7% over the past year compared with the industry’s growth of 47.5%.

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Zacks Rank & Stocks to Consider

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

NVIDIA Corporation (NVDA - Free Report) , sporting a Zacks Rank #1 (Strong Buy) at present, delivered a trailing four-quarter earnings surprise of 18.43%, on average. In the last reported quarter, it delivered an earnings surprise of 11.48%. You can see the complete list of today’s Zacks #1 Rank stocks here.

NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company’s focus evolved from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms.

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) , carrying a Zacks Rank #2 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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