AT&T, Ericsson to Offer Private Network Solutions to Firms

AT&T Inc. T, in collaboration with Ericsson ERIC, is offering private cellular networks to help enterprises meet their specific connectivity requirements. AT&T’s private network provides an end-to-end, self-contained network for greater flexibility and operational control that mitigates the risk of outside threats.

AT&T has a history of working with Ericsson in projects ranging from communication to entertainment services. Now, business customers will have access to AT&T’s private network on Ericsson’s infrastructure for a localized cellular core. The process is managed by the Citizens Broadband Radio Service (CBRS) shared spectrum to provide coverage for a wide range of applications.

AT&T delivers highly secure networking solutions for organizations of different sizes. The company is expanding its on-premises edge portfolio to offer additional private cellular solutions. Rather than routing data over public networks, private networks reduce latency and enhance security by processing them on a business’ premises. The solution delivers an optimized network infrastructure, ideal for keeping data confidential and for mission-critical operations.

Importantly, AT&T’s networks can run on Ericsson’s Industry Connect to enable a private CBRS network. Ericsson is one of the most active companies in cellular network standardization and a driver of 5G. Industry Connect is a private cellular network for industrial environments like factories and warehouses. It enables high device density, predictable latency and reliable coverage.

AT&T is offering access to 5G on its unlimited wireless plans for consumers and businesses. The company continues to invest in its wireless and wireline networks to expand coverage and improve connectivity. It connects more IoT devices than any other provider in North America. AT&T is focused on providing customers broadband through its fiber and mobile networks. The company is moving forward with its transformation plan, including operational efficiencies and cost savings.

AT&T is confident of its ability to generate strong cash flows, thanks to the resiliency of wireless and broadband services and the demand for business connectivity. While the wireless market remains competitive, AT&T is benefiting from its investments over the past few years to improve network capacity. The company’s superior service quality and network resiliency in the current situation are helping it differentiate its wireless offerings.

AT&T aims to strengthen its balance sheet while investing in key growth areas. These include broadband connectivity in fiber and 5G and software-based entertainment like HBO Max and AT&T TV. The company is also looking for non-core assets monetization opportunities to drive incremental shareholder value.

The stock has lost 8.9% in the past six months against 6.6% growth of the industry.

AT&T has a Zacks Rank #3 (Hold), at present.

A couple of better-ranked stocks in the broader industry are Corning Incorporated GLW and Ooma, Inc. OOMA, both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Corning delivered a trailing four-quarter positive earnings surprise of 39.9%, on average.

Ooma delivered a trailing four-quarter positive earnings surprise of 238.9%, on average.

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