Ericsson ERIC recently announced that Dialog Axiata had deployed the world’s first commercial virtual Base Station Controller (vBSC), leveraging the former’s cutting-edge networking technology. This deployment by the leading telecommunications service provider of Sri Lanka aims to significantly enhance network performance and reliability, providing users with a superior telecommunications experience.
Ericsson’s vBSC represents a virtualized approach to the traditional Base Station Controller, which is a key component in managing communication over GSM networks. By operating as software on virtualized hardware, the vBSC will likely offer greater flexibility and scalability in network management compared to conventional systems.
This innovative deployment marks a significant advancement in the telecom infrastructure of Sri Lanka, paving the way for operators to modernize their networks across multiple generations of technology. The vBSC's compatibility with all mobile technology generations allows for a smooth transition to virtualized network functions, leveraging Ericsson's Network Function Virtualization Infrastructure platform to streamline the upgrade process.
Additionally, Dialog Axiata’s transition to the vBSC is expected to yield substantial savings in both power consumption and physical space, further enhancing operational efficiency and promoting environmental sustainability within the sector.
Does ERIC Stand to Gain From the Deployment?
With the emergence of the smartphone market and subsequent usage of mobile broadband, user demand for coverage speed and quality has increased in recent times. Ericsson is focusing on 5G system development and has undertaken many notable endeavors to position itself for market leadership on 5G.
With over seven decades of presence in Sri Lanka, Ericsson has played a crucial role in deploying mobile communication technologies across generations. The successful deployment of the vBSC by Dialog Axiata reaffirms its commitment to technological innovation and highlights its dedication to delivering value to customers through cutting-edge network modernization strategies.
Leveraging its advanced technologies, Ericsson is poised to enhance Dialog Axiata’s operational efficiency while minimizing reliance on proprietary hardware. This shift not only replaces outdated BSC controllers but also significantly reduces the total cost of ownership, illustrating the economic advantages of virtualized networks.
These advancements are expected to generate incremental demand for Ericsson’s solutions, leading to higher revenues. An improved financial performance is likely to propel the stock upward.
ERIC’s Stock Price Performance
Shares of Ericsson have gained 82.5% over the past year compared with the industry’s growth of 48.6%.
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ERIC’s Zacks Rank and Key Picks
Ericsson currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader industry have been discussed below.
Ubiquiti Inc. UI sports a Zacks Rank #1 (Strong Buy) at present. Its highly flexible global business model remains apt to adapt to the changing market dynamics to overcome challenges while maximizing growth. You can see the complete list of today’s Zacks #1 Rank stocks here.
Its excellent global business model, which is flexible and adaptable to evolving changes in markets, helps it to beat challenges and maximize growth. The company’s effective management of its strong global network of more than 100 distributors and master resellers improved UI’s visibility for future demand and inventory management techniques. In the last reported quarter, Ubiquiti delivered an earnings surprise of 4.19%.
Workday Inc. WDAY carries a Zacks Rank #2 (Buy) at present. In the last reported quarter, it delivered an earnings surprise of 7.36%. WDAY is a leading provider of enterprise-level software solutions for financial management and human resource domains.
InterDigital, Inc. IDCC sports a Zacks Rank of #1 at present. It has a long-term growth expectation of 17.44%
Headquartered in Wilmington, DE, the company is a pioneer in advanced mobile technologies that enables wireless communications and capabilities. It engages in designing and developing a wide range of advanced technology solutions, which are used in digital, cellular, as well as wireless 3G, 4G and IEEE 802-related products and networks.
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