Ericsson ERIC recently collaborated with U.S.-based broadband and telecommunication company, Verizon Communications Inc. VZ, to aid the deployment of cellular low-power wide-area (“LPWA”) networking for Internet of Things (“IoT”) applications. Of late, Ericsson is keeping rather busy in demonstrating its latest IoT offerings and collaborations in the ongoing CES 2016 event, which are likely to unlock multiple sources of revenues in the near future.
Retrospectively, Ericsson and Verizon’s partnership had commenced in 2014, when the technology behemoths began IoT trials for a gamut of consumer and industrial applications that can be supported by contemporary mobile networks. The latest collaboration focuses on improvement of LPWA, a special type of telecommunication network that supports long-range communications at a low-bit rate. Ericsson and Verizon plans to continue joint trials on “live network testing of IoT use cases” for 2016, in order to quicken the commercialization pace of IoT applications.
Verizon believes its extensive LTE networks are ideal for “high-capacity, low-latency applications”, which in turn, will help speed up adoption of IoT applications on a mass scale. Moreover, Ericsson’s updated software will allow Verizon to extend the coverage of its low-cost IoT devices as well as provide superior battery longevity for improved performance. In short, Ericsson’s LPWA solution will help Verizon connect seamlessly with multiple IoT applications by reducing power and cost requirements.
Ericsson’s interest in upgrading IoT network forms an integral part of its strategic plan to commercialize 5G deployments. In this regard, the company recently unveiled its new software Networks Software 17A, which can support billions of upcoming IoT devices and their divergent connectivity requirements.
Meanwhile, Ericsson’s Networks Software 17A has empowered cellular networks to support Smart Cities, Smart Metering and Smart Agriculture. The company has already pioneered the industry’s first cellular LPWA offering that continues to gain impressive popularity among major operators. We believe Ericsson’s recent attempts to strengthen its foothold in the IoT market will significantly aid its top- and bottom-line performance, going forward.
Ericsson presently carries a Zacks Rank #2 (Buy). Investors interested in the industry may also consider stocks like InterDigital, Inc. IDCC and Motorola Solutions, Inc. MSI. Both InterDigital and Motorola Solutions sport a Zacks Rank #1 (Strong Buy).
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