Ericsson ERIC recently inked a Memorandum of Understanding (“MoU”) with China Mobile Research Institute (“CMRI”), the research wing of state-owned telecommunication company of China Mobile Limited CHL, to foster 5G research and development. According to this agreement, the companies will work together to develop innovative 5G mobile network technologies to help revolutionize global information and communication technology.
The MoU, extending over a period of five years, will witness a collaboration between Ericsson and CMRI for development of 5G radio technology, creation of a comprehensive 5G infrastructure as well as verification and trial of narrowband Internet of Technology (NB-IoT) for massive machine-type communication. The companies aspire to come up with a 5G Air Interface, which is expected to gain huge traction when the 5G networks goes fully commercial from 2020.
This apart, Ericsson and China Mobile are working together to develop RAN features to create a highly advanced 5G infrastructure for industrial use. Also, the companies are working toward standardization of 5G, which, they believe, is the cornerstone for digitalization of industries as well as broadband.
The largest mobile operator in terms of subscribers, China Mobile has already accomplished the deployment of 4G networks and 4G+ networks. Presently, the company is working on Internet+ strategy, which focuses on bolstering the network performance. Also, upgrade of traditional industrial lines and business models in China continue to supplement the growth drive of Internet+ program.
Last November, Ericsson highlighted the bright prospects of 5G networks in its latest Ericsson Mobility Report. As per company sources, 5G mobile subscription count is projected to reach 150 million by 2021 with the U.S., China, South Korea and Japan grabbing the highest number of 5G subscriptions. Meanwhile, Ericsson’s concerted efforts to bring 5G research out of the labs and into live test networks are bearing fruits across all key geographic regions in which it operates, including Northeast Asia, North America and Latin America.
In this backdrop, telecom operators continue to scout for best-in-class arsenals to set themselves apart from peers. With a series of technologically advanced offerings to its credit, such as advanced antenna design, multi-user MIMO and beamforming, Ericsson and its ecosystem partners have emerged as leading players in the commercialization of 5G technology.
Ericsson currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include InterDigital, Inc. IDCC and Motorola Solutions, Inc. MSI. While InterDigital sports a Zacks Rank #1 (Strong Buy), Motorola Solutions holds a Zacks Rank #2 (Buy).
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