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Ericsson to Aid Brighter with DCP for Improved Performance

Ericsson'sERIC Device Connection Platform ("DCP") was recently selected by the Sweden-based human innovation company, Brighter, to act as its global connectivity management platform for improving delivery of "m-health" solutions. Given the bright prospects of m-health solutions in the healthcare market, Ericsson is expected to reap significant benefits from this deal, going forward.

DCP can be described as a cloud-oriented Internet of Things (IoT)/machine-to-machine (M2M) platform, designed to automate business processes in areas like connectivity management, subscription management and business support systems ("BSS")/ operations support system ("OSS").

Brighter plans to deploy DCP for standardizing its solutions, enhancing lifecycle management of its offerings and improve distribution of future products like Brighter One (a device for diabetic treatment). Most importantly, Ericsson's state-of-the-art platform will allow Brighter to obtain contracts from global operators who provide connectivity management services through DCP.

DCP is widely popular among operators as they use it to connect their subscribers to the "Benefit Loop", which allows them to offer new services. Recently, e-services, apart from conventional voice and data offerings, have become popular in the contemporary Information and Communication Technology ("ICT") industry. Hence, the deal between Ericsson and Brighter comes at the most opportune moment as it will not only unlock fresh opportunities for global operators but also improve the service quality for patients.

World Health Organization ("WHO") reports suggest that diabetes is set to become the 7th largest cause of death by 2030, and this requires immediate attention from healthcare authorities. For Ericsson, this will likely translate into lucrative opportunities, with its DCP platform and profound IoT experience gaining huge number of customers, going forward.

Moreover, according to Research and Markets, Ericsson is one of the key vendors in the IoT market, along with other major players like Alcatel-Lucent ALU , AT&T T and Cisco Systems CSCO . With a projected CAGR of 26.6% during 2014-2019, the IoT market represents solid potential for Ericsson in the long run. We believe this Zacks Rank #3 (Hold) stock's efforts to improve its foothold in the ICT industry, coupled with its robust IoT offerings (like the DCP platform), will help it outshine its peers in the future.

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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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