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Ericsson (ERIC) Partners Turkcell to Develop 5G Network Slicing

Ericsson ERIC recently collaborated with Turkcell, a prominent communication service provider (CSP) in Turkey, to develop a cutting-edge 5G network slicing solution. Through a successful 5G Standalone proof of concept (POC), the partnership showcased the capability to support several network slices on a commercially available 5G device serving different customer user profiles and applications.

Network slicing enables the development of multiple virtual networks within a shared physical network infrastructure. This technology allows for various applications with diverse network requirements to function efficiently on the same network platform. This technology presents significant business opportunities for CSPs, offering a range of market strategies, particularly in the enterprise sector.

By implementing network slicing, service providers can enhance network resource utilization, broaden their revenue streams and explore new avenues for generating income. Ericsson's forecasts suggest that revenue potential from slicing-enabled services for CSPs is projected to reach $45 billion by 2025.

Ericsson and Turkcell have been actively exploring a wide array of 5G use cases targeting both consumers and enterprise segments. These include applications such as 5G-connected autonomous mobile robots, sensor networks and network slicing for enhanced mobile broadband. During the recent venture, Ericsson has demonstrated that incorporating 5G network slicing can empower app developers, businesses, as well as individual subscribers with enhanced flexibility and performance across various applications.

During the procedure, Ericsson’s dual-mode 5G core, 5G RAN Slicing and Ericsson Radio Systems were utilized. Ericsson Orchestrator provided the automation. The PoC was implemented on a 5G Core testbed operating on TurkCell’s Telco Cloud infrastructure. The User Equipment Route Selection Policy feature was deployed by Ericsson Dynamic Network Slice Selection. This feature allows devices to connect multiple network slices simultaneously, delivering flexible separation of services.

It also ensures better traffic steering, which helps operators optimize resource utilization and delivers a premium experience to end users. Apart from fulfilling varied connectivity requirements, the 5G network slicing is poised to drive innovation across industries, fostering the development of new business models with advanced service offerings.

The collaboration underscores growing demand for Ericsson’s 5G product suite. The company’s strong emphasis on innovation and developing advanced 5G use cases will likely bolster its portfolio and drive commercial expansion.

With the emergence of the smartphone market and the subsequent usage of mobile broadband, user demand for coverage speed and quality has increased exponentially. Further, to maintain performance with increased traffic, there is a continuous need for network tuning and optimization.

Ericsson is much in demand among operators to expand network coverage and upgrade networks for higher speed and capacity. The company is reportedly the world’s largest supplier of LTE technology with a significant market share and has established a large number of LTE networks worldwide.

The company focuses on 5G system development and has undertaken many notable endeavors to position itself as a market leader. It believes that the standardization of 5G is the cornerstone for digitizing industries and broadband. Ericsson expects mainstream 4G offerings to give way to 5G technology in the future. It currently has 158 live 5G networks across the globe, spanning 67 countries.

The stock has lost 2.5% over the past year against the industry’s growth of 14.1%.

Zacks Investment Research
Zacks Investment Research


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Zacks Rank & Stocks to Consider

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

NVIDIA Corporation NVDA, currently sporting a Zacks Rank #1 (Strong Buy), delivered a trailing four-quarter average earnings surprise of 20.18%. In the last reported quarter, it delivered an earnings surprise of 13.41%. You can see the complete list of today’s Zacks #1 Rank stocks here.

NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company’s focus evolved from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms.

InterDigital, Inc. IDCC, carrying a Zacks Rank #2 (Buy) at present, delivered a trailing four-quarter average earnings surprise of 170.50%. In the last reported quarter, it delivered an earnings surprise of 16.53%.

IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks.

Ubiquiti Inc. UI , carrying a Zacks Rank #2 at present, is a key pick in the broader industry. Headquartered in New York, it offers a comprehensive portfolio of networking products and solutions for service providers and enterprises at disruptive prices.

It boasts a proprietary network communication platform that is well-equipped to meet end-market customer needs. In addition, it is committed to reducing operational costs by using a self-sustaining mechanism for rapid product support and dissemination of information by leveraging the strength of the Ubiquiti Community.

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