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Ericsson (ERIC) & TDC Launch Pilot 5G Network in Denmark

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A few days back Ericsson (ERIC - Free Report) announced that it has delivered 5G equipment for a pilot network, which went live in Elsinore, Denmark, in collaboration with TDC. The network was operated on a 3.5 GHz test license. Together with Danish service provider, Ericsson is on track to achieve ‘Digital Denmark’ objectives to expand 5G coverage across the country.

This network has been built using Ericsson’s commercial 5G hardware and software, including Massive MIMO radio. The move is likely to empower a digital economy while boosting Denmark’s position as a digital leader by helping mobile broadband subscribers and industries to capitalize on 5G technology, IoT and the fourth industrial revolution.

TDC’s core network is being modernized using Ericsson’s dual-mode 5G Cloud Core solution. Notably, the Swedish company’s investments in R&D over the past years have secured a competitive and industry-leading offering. 5G is touted to empower a new era for the digital economy, and is expected to enable Denmark to strengthen its position. Ericsson seeks to transform the operator’s Radio Access Network with its latest Radio System solutions.

In March 2019, Ericsson was selected by TDC for the rollout of nationwide commercial 5G (including managed services) as part of the operator’s major network overhaul program. Ericsson has been investing in its competitive 5G-ready portfolio to enable communication service provider’s seamless migration to 5G.

The company is also leading the 5G race in Europe. Its latest Mobility Report, issued in November 2019, anticipates global 5G subscriptions to exceed 2.6 billion within the next six years on the back of a rapidly evolving ecosystem. The report states that 5G will cover up to 65% of the world’s population by the end of 2025, and handle 45% of global mobile data traffic.

Average monthly data-traffic-per-smartphone is expected to rise from the current figure of 7.2 GB to 24 GB by the end of 2025, supported by consumer behavior like virtual reality streaming. Moreover, growth in 5G subscription is expected to be significantly faster than that of LTE. The fastest uptake is likely to be in North America with 74% of projected 5G mobile subscriptions by the end of 2025. North East Asia is projected to follow at 56% with Europe at 55%.

In October 2019, the company completed the acquisition of Kathrein’s antenna and filter business to expand its Radio System portfolio with new products and capabilities. Ericsson has been executing its strategy and is on track to achieve its 2020 financial goals. It is working with operators to help in network modernization, while optimizing various opportunities.

Shares of Ericsson have gained 5.9% compared with the industry’s growth of 27.8% in the past year. The Zacks Consensus Estimate for its current-year earnings has been revised 25.7% upward over the past 90 days to 44 cents.



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

Some better-ranked stocks in the industry are Qualcomm Incorporated (QCOM - Free Report) , Ubiquiti Inc. (UI - Free Report) and PCTEL, Inc. , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Qualcomm has a long-term earnings growth expectation of 14%.   

Ubiquiti has a long-term earnings growth expectation of 9.4%.   

PCTEL surpassed earnings estimates in each of the trailing four quarters, the average surprise being 150.6%.

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