Ericsson To Modernize Teracom's Network For Digital Sweden
Zacks Investment Research | Mar 19, 2020 09:18PM ET
Ericsson (BS:ERICAs) (NASDAQ:ERIC) recently communicated that it has been chosen by Teracom AB as a technology partner for its nationwide 4G network. Teracom is a state-owned service provider in Sweden, offering communications services to public and private national critical infrastructure enterprises. Financial terms of the deal remained undisclosed.
Per the agreement, which also includes products and solutions from Ericsson’s partner Juniper Networks (NYSE:JNPR) , Ericsson will provide radio access network and its Cloud Core products for 4G, as well as transport solutions and security gateways. The Swedish telecom gear maker’s cutting-edge technology will enable Teracom to offer customers reliable connections and a potential path toward 5G.
Teracom is using the low 450 MHz band, which is well suited for coverage that benefits remote locations and utilities like electric and water. The new network will be rolled out in second-quarter 2020. Ericsson’s Radio System provides a powerful mobile broadband with optimized total cost of ownership per gigabyte and efficient 5G introduction. With a modernized 4G network, Teracom will be able to support an increasingly digitized society in Sweden.
Ericsson is witnessing 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 shares based on technology and cost competitiveness.
Moreover, Ericsson is on track with its 2020 and 2022 financial targets while making progress toward building a stronger company in the long term. It has invested in R&D and supply chain capacity in order to increase market share. The company continues to focus on its restructuring plan to cut costs and streamline focus areas, as well as explore options for the media business.
Ericsson’s “cost and efficiency program” has been devised to generate higher cost savings. The company is focusing on structural changes that will help generate lasting efficiency gains and boost cost competitiveness. It intends to increase investment in certain core areas to develop product portfolio. Ericsson is also focusing on stabilizing its IT, cloud and project portfolio, and re-establishing profitability in managed services by managing its existing contracts as well as investing in automation.
Ericsson has a long-term earnings growth expectation of 17.7%. The stock has lost 19.6% compared with 26.4% decline recorded by the Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.