Ericsson Extends Partnership With Omantel for 5G Development
Ericsson ERIC strengthened its long-standing business relationship with Omantel, a leading telecommunications company in Oman. The Sweden-based telecom equipment maker has been chosen by Omantel to support its ongoing 5G radio access network (RAN) deployment. Under the multi-year partnership, products and solutions from the Ericsson Radio System portfolio will be deployed in Omantel’s network.
This includes Advanced Antenna Systems and 3GPP standards-based 5G New Radio. Omantel’s 5G network push shows its contribution to the Oman 2040 Vision initiative. Ericsson Radio System comprises hardware, software and services for RAN Compute, antenna system, transport and power. It enables smooth and cost-effective migration from 4G to 5G, supporting communication service providers to roll-out the technology.
The company’s 5G radio access technologies provide the infrastructure required to meet growing demand for high-bandwidth connections and support the real-time, high-reliability communication requirements of mission-critical applications. Ericsson will support Omantel’s commercial 5G deployment at key locations across Oman, including Salalah, Nizwa and Sur. Ericsson’s high-speed and low-latency 5G technology will enable the operator to meet growing data traffic demands.
Ericsson is witnessing a healthy momentum in its business, based on the strategy to increase its 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 driving down costs; and selectively gain market share based on technology and cost competitiveness.
Ericsson is making progress toward building a stronger company in the long term, while investing in its supply chain capacity. It currently has 97 commercial 5G agreements (of which 55 are publicly announced) and includes 45 live 5G networks in 25 countries. Ericsson’s ‘cost and efficiency program’ has been devised to generate higher cost savings. The company is focusing on structural changes that will generate lasting efficiency gains and boost cost competitiveness.
The company’s portfolio spans Networks, Digital Services, Managed Services and Emerging Business. Considering the current visibility, the company maintains the financial targets for 2020 and 2022. Ericsson is scheduled to report second-quarter 2020 results on Jul 17, before the opening bell.
Shares of Ericsson have returned 14.6% compared with 11.7% growth of the industry in the past three months. The company has a long-term earnings growth expectation of 26% compared with 14.8% of the industry.
Ericsson currently carries a Zacks Rank #2 (Buy) and has a VGM Score of B.
Some other top-ranked stocks in the broader industry are Turtle Beach Corporation HEAR, T-Mobile US, Inc. TMUS and Ooma, Inc. OOMA. While Turtle Beach and T-Mobile sport a Zacks Rank #1 (Strong Buy), Ooma carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Turtle Beach has a trailing four-quarter positive earnings surprise of 46.4%, on average.
T-Mobile has a trailing four-quarter positive earnings surprise of 19.4%, on average.
Ooma has a trailing four-quarter positive earnings surprise of 228.2%, on average.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Click to get this free report
Ericsson (ERIC): Free Stock Analysis Report
Turtle Beach Corporation (HEAR): Free Stock Analysis Report
TMobile US, Inc. (TMUS): Free Stock Analysis Report
Ooma, Inc. (OOMA): 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.