Ericsson (ERIC) to Modernize Telia's Networks for 5G Era

Zacks Equity Research
·3-min read

Ericsson ERIC has partnered with Telia to deploy 5G networks across Sweden and Estonia by 2025. The Sweden-based telecom equipment provider currently has 65 live 5G networks and 113 commercial 5G agreements with communication service providers all over the world.

Per the deal, Ericsson’s industry-leading portfolio will modernize Telia’s 4G networks in Sweden and Estonia to provide 5G services across a network of 10,000 cellular sites. As a result, Telia’s customers will be able to experience the unmatched benefits of 5G.

Since 2016, Ericsson and Telia have been jointly working on 5G development in the Nordic and Baltic countries. The companies have collaborated with other industry and academic leaders to develop 5G use cases. Notably, they have launched commercial 5G in Norway and Sweden this year.

Ericsson’s 5G radio access network deployment and 4G network modernization will comprise products and solutions from the Ericsson Radio System portfolio. This includes Ericsson Spectrum Sharing, which will enable Telia to dynamically share 4G and 5G traffic. Also, Ericsson is supplying 5G Carrier Aggregation for better coverage, increased capacity and higher data speeds.

Ericsson has deployed 5G in high-, mid- and low-bands in different urban, suburban and rural locations. The company’s 5G radio access technologies provide the infrastructure required to meet the growing demand for high-bandwidth connections and support the real-time, high-reliability communication needs of mission-critical applications. Ericsson’s portfolio spans Networks, Digital Services, Managed Services and Emerging Business.

The company is witnessing healthy momentum in its business, driven by the strategy to increase investments for technology leadership, including 5G. In Networks, the company’s ongoing activities are to invest in R&D to safeguard a leading product portfolio and cost leadership; increase investments in automation and serviceability to cut costs; and selectively gain market share based on technology and cost competitiveness.

Ericsson is confident in delivering on the 2020 Group target. The company is positive on the long-term outlook. Furthermore, the acquisition of Cradlepoint will strengthen its ability to grow in the 5G enterprise market.

Other prominent players in the broader industry include Nokia NOK, Juniper Networks JNPR and InterDigital IDCC.

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