Markets

Ericsson (ERIC) Allies LG Uplus for 5G & IoT Advancements

A generic image of a person with a pen and a calculator
Credit: Shutterstock photo

Recently, EricssonERIC inked a memorandum of understanding ('MoU') with LG Uplus for the establishment of 5G and Internet of Things ('IoT') technologies. LG Uplus, a Seoul, South Korea-based telecom operator, is one of the subsidiaries of South Korean multinational conglomerate corporation - LG Corporation.

Initially running through 2020, the MoU encompasses four areas - software-defined networking ('SDN') and Network Functions Virtualization ('NFV'); IoT-Advanced technologies; global content delivery networks ('CDNs'); and IoT infrastructure. As per the collaboration, both the firms will jointly form strategies related to technologies and frequencies and make a blueprint for long-term network development. Particularly, Ericsson and LG Uplus will be involved in testing, research, result sharing activities along with the establishment of technology and equipment.

Of late, Ericsson has been focusing on fortifying 5G system development and undertaken many notable endeavors related to that in the past. The company believes that standardization of 5G is the cornerstone for digitalization of industries as well as broadband. It is also important for different global network operators to provide uniform customer experience. Moreover, Ericsson foresees the mainstream 4G offerings to ultimately be engulfed by adoption of 5G technology going ahead. The abovementioned alliance marks a significant step for Ericsson towards achieving this goal.

In relation to that, earlier this month, Ericsson partnered with Verizon Communications Inc. VZ in the latter's 5G projects, the field trials for which are planned to commence in 2016. Along with Ericsson, other telecom behemoths like Qualcomm Inc. QCOM and Nokia Corp. NOK are also there in the partners list of Verizon for the same.

Apart from this, in the last reported quarter, Ericsson collaborated with several entities such as Scuola Superiore Sant'Anna in Pisa, King's College London in UK, Technische Universität Dresden in Germany and leading telecom operator KT Corp. of South Korea to foster 5G development. Such moves will transform the future of the communication eco-system, including devices, mobile access, IP core and cloud solutions and solidify this Zacks Rank #2 (Buy) stocks' network reach across the masses.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

NOKIA CP-ADR A (NOK): Free Stock Analysis Report

ERICSSON LM ADR (ERIC): Free Stock Analysis Report

VERIZON COMM (VZ): Free Stock Analysis Report

QUALCOMM INC (QCOM): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

ERIC VZ QCOM NOK

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More