Ericsson's 5G Drive Going Strong, Demonstrates Prototype

Swedish communication technology and services giant Ericsson (ST:ERICAs) (NASDAQ:ERIC) is focused on driving 5G technology, as evident from its recent string of announcements regarding new developments and demonstrations in the field.

5G Proof of Concept

As part of their joint commitment to 5G innovation, Ericsson and Vodafone (LON:VOD) recently demonstrated a new 5G Proof of Concept by developing the world’s first 5G Smart Network Edge prototype.

The companies used the prototype, which includes a 5G ready core, to reveal the advantages of network slicing and distributed cloud technology with an example of a Machine Vision application.

The demo showed that the 5G Smart Network Edge lends higher efficiency to the industry by reducing network latencies, significantly less video traffic that needed to be sent over the Wide Area Network, and better protection for sensitive data.

The example showed how 5G can help industries become more efficient, secure and cost effective.

Trial of Prospective 5G Networks

Last week, Ericsson teamed up with telecommunications operators SK Telecom and Deutsche Telekom (DE:DTEGn) to implement a transcontinental trial of prospective 5G networks.

The three parties will deploy trial networks in South Korea and Germany that will use a number of vital 5G technologies like Software-Defined Telecommunications Infrastructure, Network Functions Virtualization, distributed cloud and network slicing technologies.

Additionally, the partners will collaborate on the development of 5G use cases, potential standardization activities and global marketing promotions.

This first-of-its-kind transcontinental 5G trial aims to deliver consistent and optimized end-user experiences for advanced use cases with improved global reach.

Ericsson: Driving 5G

Touted as the next generation of mobile technology, 5G has achieved rapid momentum over the past year.

5G networks have the capability to radically lessen latency, accelerate download and upload speeds, enhance network reliability and spectral efficiency. Also, they have the potential to support IoT development by considerably escalating the number of devices that can connect to the network simultaneously.

Researchers envisage that 5G will help drive a new era of innovation in digital networks, reshaping the world for both consumers and a range of industries. According to a research by Ovum, global 5G subscriptions are projected to reach 24 million by 2021, with Asia-Pacific having a 40% share and Europe accounting for 10%.

Ericsson continues to aggressively drive progress in 5G technology, and currently has 5G network trials scheduled with 24 operators. In addition, it is working on 5G projects and future use cases with 12 industry partners and about 20 research institutes and universities.

We believe that Ericsson and its partners will emerge as key players in defining the next generation of mobile network technology.

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However, stiff competition and currency fluctuations have been weighing on this company’s performance lately. Ericsson is also grappling with waning sales in some key end-markets, slowdown in 4G deployment in China and ongoing industry consolidation among customers and major rivals.

Ericsson competes with Ubiquiti Networks, Inc. (NASDAQ:UBNT) , ARC Group Worldwide, Inc. (NASDAQ:ARCW) and Clearfield, Inc. (NASDAQ:CLFD) .