Yahoo Finance Ericsson (ERIC) to Deliver Nationwide 5G Network in Malaysia
Ericsson ERIC has inked a 10-year 5G partnership deal with Digital Nasional Berhad (“DNB”) to deliver a nationwide 5G network in Malaysia.
DNB, which is wholly owned by the Minister of Finance (Incorporated), has been mandated by the government of Malaysia to be the single neutral party to undertake the deployment of 5G infrastructure and network.
DNB is helping Malaysia to achieve its digital goals as outlined in the government’s MyDIGITAL blueprint, which plans to transform Malaysia into a digitally-driven, high-income country.
Ericsson is a global leader in 5G with 97 live 5G networks in 46 countries. The company’s shares have moved up 6.7% in the past year compared with the industry’s growth of 23.9%.
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DNB’s partnership with Ericsson covers the latter’s Radio System products and solutions, including Spectrum Sharing, cloud-native 5G Core, and 5G Radio Access Network.
The Sweden-based telecom gear maker will supply its Managed Services offering, Ericsson Operations Engine. It will also provide operational support systems and business support systems solutions.
DNB intends to launch Malaysia’s first 5G network in Kuala Lumpur, Putrajaya, and Cyberjaya in the initial phase. It targets 80% 5G nationwide population coverage by 2024.
5G offers high-speed, low-latency, and large-data-handling capabilities that will digitally transform the country. It will create a 5G ecosystem that will boost innovation in areas such as artificial intelligence, augmented reality, virtual reality, and automation across a range of industries.
With the deployment of 5G network, DNB will provide access to mobile service providers and other licensees to accelerate Malaysia’s digital transformation and Industry 4.0.
Ericsson is well-positioned to capitalize on the market momentum with its competitive 5G product and services portfolio. The company is likely to benefit from its strategy that hinges on increased investments in research and development for technology leadership.
The stock currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the industry are Nokia Corp. NOK, Qualcomm, Inc. QCOM, and InterDigital, Inc. IDCC, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nokia delivered a trailing four-quarter earnings surprise of 202.7%, on average.
Qualcomm pulled off a trailing four-quarter earnings surprise of 13.5%, on average.
InterDigital delivered a trailing four-quarter earnings surprise of 536%, on average.
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