Ericsson recently signed an agreement with Ooredoo Qatar to deploy the Ericsson Smart Connected Site solution in order to reduce carbon emissions in Qatar. The solution will also help Ooredoo Qatar increase network energy efficiency and lower operating costs.
The Ericsson Smart Connected Site solution uses AI and automation techniques to manage hybrid energy sources such as Li-ion batteries and fossil fuels. This optimizes resource utilization and reduces reliance on diesel generators, resulting in lower carbon emissions. The solution enables real-time monitoring of key metrics and control of energy consumption, leading to improved energy efficiency.
Ooredoo Qatar is expected to implement the Ericsson Network Manager (ENM), a unified management system that provides full control over network performance and site energy. This modern hybrid energy management system includes advanced communication equipment such as 5G radios and cloud RAN, which is anticipated to generate incremental revenues for Ericsson and strengthen its market position.
Ericsson Radio System, which includes hardware, software, and services for radio, RAN Compute, antenna system, transport, power, and site solutions, facilitates a smooth and cost-effective migration from 4G to 5G. It supports high-bandwidth connections and real-time communication requirements for mission-critical applications.
Due to the increasing demand for coverage speed and quality in the smartphone market, there is a continuous need for network tuning and optimization. Ericsson is in high demand among operators to expand network coverage and upgrade networks to meet higher speed and capacity requirements. The company has a significant market share and is the world’s largest supplier of LTE technology, with numerous LTE networks deployed globally.
Ericsson is focused on 5G system development and has positioned itself as a market leader. The company believes that the standardization of 5G is crucial for digitizing industries and broadband. It currently has 152 live 5G networks across 65 countries.
Despite these positive developments, Ericsson’s stock has experienced a decline of 24.6% over the past year, compared to the industry’s decline of 10.2%.
Image Source: Zacks Investment Research
Ericsson currently has a Zacks Rank #3 (Hold).
Key Picks
Arista Networks, Inc. (ANET) has a Zacks Rank #2 (Buy) and is expected to benefit from strong momentum and diversification across various verticals and product lines. The company has a software-driven, data-centric approach that helps customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 18.7%.
AudioCodes Ltd. (AUDC) is also a Zacks Rank #2 stock. It offers advanced communications software, products, and productivity solutions for the digital workplace. The company provides innovative products and services to multinational enterprises and tier-1 operators worldwide.
Motorola Solutions, Inc. (MSI) carries a Zacks Rank #2 and provides services and solutions to government segments, public safety programs, large enterprises, and wireless infrastructure service providers. The company develops and services analog and digital two-way radio, voice and data communications products, and systems for various markets.
For more information and to download the free report “7 Best Stocks for the Next 30 Days,” visit the Zacks Investment Research website.
Note: The views and opinions expressed in this article belong to the author and do not necessarily reflect those of Nasdaq, Inc.
