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Ericsson Introduces Transport Innovation Services at UITP - Analyst Blog

Just two weeks after collaborating with Volvo Bus to foster urban mobility in Latin America, communications and technology giant EricssonERIC is now set to wow investors with its connected bus stop concept. The company has demonstrated this unique concept at one of the most coveted public transport event in the world, UITP World Congress and Exhibition, by integrating state-of-the-art 3G, LTE and Wi-Fi small cell technology.

Connected Bus Stop

Leveraging the competence of small cell infrastructure, connected bus stop will prove to be a blessing for public transport operators by opening up additional sources of revenue. This is because transport authorities can lease the small cell infrastructure to telecom mobile operators as well.

Also, the connected bus stop serves the dual purpose of supporting conventional uses of mobile broadband as well as certain functionalities that are particularly useful for commuting purposes. These utilities are likely to encompass a wide range of applications like screens displaying exact locations of buses based on real-time data, information for tourists, news updates and interactive maps for making the whole process of commuting effortless.

With rapid pace of urbanization and pressing demand from customers in key commercial terminals of business, entertainment and financial areas, telecom operators are finding it increasingly difficult to deliver high downlink speed. Ericsson's connected bus stop concept is just the perfect solution for this problem as it integrates the small cell access network with telecom transmission networks, thereby enhancing the overall network performance.

In Conclusion

Ericsson's robust portfolio of telecommunications solutions and services has helped it create a solid Information Communication Technology ("ICT") for road and rail that will likely drive significant improvement in the transport sector, going forward.

Some of the company's additional initiatives to improve the efficiency of the transport sector include small cell as a service (related to improvement of network capacity), connected traffic cloud (associated with sharing of real-time traffic and road condition data for improved transportation) and mobility as a service (for facilitating multi-modal transport).

We believe these developments will ultimately help in boosting the company's revenue stream in the long run. The alarming rate of global population growth, coupled with rapid development of disruptive technology, will exert pressure on both transport operators and local telecom network operators. Subsequently, Ericsson's 'Small Cell as a Service', the guiding force behind concepts like connected bus stops, are likely to gain impressive market traction in the future, thereby improving the company's business prospects.

Ericsson currently carries a Zacks Rank #4 (Sell).Some better-ranked wireless equipment stocks include Harris Corporation HRS , PCTEL, Inc. PCTI and Polycom, Inc. PLCM . All three stocks hold a Zacks Rank #2 (Buy).

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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.

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