Premium wireless equipment company, Ericsson ERIC, along with T-Mobile US, Inc. TMUS, recently declared the results of their 5-Generation (‘5G’) trial, which includes a voice call among 4-Generation (‘4G’) and 5G networks. The test integrated the devices as well as Long-Term Evolution (‘LTE’) network of T-Mobile with Ericsson’s premium 5G radio prototype system.
The outcome of the demonstration confirmed that it is feasible to realize the connection throughput of more than 12 Gbps (billions of bits per second) for ultra-low latency links of around 2 milliseconds and 5G downloads.
In Feb 2016, both the companies had announced their collaboration in working toward the installation of 5G pre-standards based 28GHz (Gigahertz) test system for field trials and laboratories in the U.S. The two technology giants have given their approval for developing and testing the preferred 5G use-cases and services. This has been done in order to facilitate T-mobile’s assessment of the emerging 5G technologies, boost 5G technology advancements and consistencies as well as discover new business opportunities.
Ericsson would be meticulously supporting T-Mobile to expand the practice of 5G from contemporary field trials to full commercial accessibility. Increased 5G development is projected to enhance innovation in variable industrial fields, counting virtual as well as augmented reality applications in connected homes, cars and cities.
Ericsson is a popular provider of communication networks, telecom services and support solutions. A leader in telecommunications, the company remains keen on fortifying its role as an ICT (Information and Communications Technology) solutions provider. We believe that the new innovations made by the company in association of T-Mobile would improve Ericsson’s brand status within the industry.
Share Price and Zacks Rank
Share price of the company Ericsson was $6.73 per share as of Sep 20, 2016. We expect the announcement to raise investors’ confidence in the stock.
Ericsson currently carries a Zacks Rank # 4 (Sell). The company is currently delimited by several issues at present. Excessive industry rivalry, saturated market supply and lawsuit issues are some problems experienced by the company at present.
Stocks to Consider
Clearfield, Inc. CLFD and Motorola Solutions, Inc. MSI are two well-ranked stocks within the industry. Both the companies currently hold a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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