Ericsson ERIC recently inked a definitive agreement with Ooredoo Qatar for an undisclosed amount for deploying Ericsson Smart Connected Site solution to help reduce the carbon footprint in the Middle East country. In addition, the solution will enable the Qatar-based telecommunications firm to increase its network energy efficiency for lower operating costs.
Leveraging AI and automation techniques, Ericsson Smart Connected Site solution will enable the seamless management of hybrid energy sources such as Li-ion batteries along with fossil fuels for optimal utilization of resources. It enables real-time, remote monitoring of key metrics through the collection of site material operating data and status, followed by hybrid management and control of energy consumption by optimizing the network’s use of energy sources. This reduces the reliance on diesel generators, lowering Ooredoo Qatar’s carbon emissions.
The company is also likely to utilize the Ericsson Network Manager (ENM), a single unified intelligent management system that provides full control over every aspect of the network, from overall site performance to site energy. This modern hybrid energy management system will have end-to-end communications equipment like 5G radios and cloud RAN (Radio Access Network). These are expected to translate into incremental revenues for the company and strengthen its leading position in the market.
Ericsson Radio System comprises hardware, software and services for radio, RAN Compute, antenna system, transport, power and site solutions. It enables smooth and cost-effective migration from 4G to 5G, aiding communication service providers to launch the avant-garde technology and grow 5G coverage fast. The company’s 5G radio access technologies provide the infrastructure to meet the growing demand for high-bandwidth connections and support real-time, high-reliability communication requirements of mission-critical applications.
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 152 live 5G networks across the globe, spanning 65 countries.
The stock has lost 24.6% over the past year compared with the industry’s decline of 10.2%.
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Ericsson currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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