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Ericsson Partners with Unicom to Develop 5G, Cloud & IoT

Communication technology and services behemoth Ericsson ERIC joined forces with China Unicom to pool resources for network architecture, 5G, cloud and the Internet of Things (IoT). This adds to over 20 agreements that Ericsson has inked with operators around the world in order to test 5G.

The collaboration will drive innovation and enable early application of the 5G mobile network technology.

Per the Memorandum of Understanding, the companies will jointly work on next-generation networks. They will speed up network standardization and maturity of the network infrastructure. Also, they will take steps to set up cross-industry ecosystems and promote innovation.

Ericsson has been a long-term strategic partner for China Unicom, and this partnership will help the latter become more competitive in networks, as well as capitalize on the opportunities for network transformation.

Ericsson has been very active with regard to its 5G goals, having kickstarted 2016 with numerous significant 5G agreements with established players like Vodafone Group VOD, Telefonica and Qualcomm Technologies, a subsidiary of Qualcomm Inc. QCOM.

Also, Ericsson’s partnership with Verizon achieved milestone improvements in 5G live networking. The company has also joined China Mobile's 5G Joint Innovation Center program for fostering 5G development.

Late last year, the company released a mobility report that highlighted bright prospects for 5G network space. Per the report, the company expects 5G mobile subscriptions to increase to 150 million by 2021, with the U.S., China, South Korea and Japan projected to generate the highest number of subscriptions.

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

However, stiff competition, spectrum crunch issues and currency fluctuations have been weighing on this Zacks Rank #4 (Sell) company’s performance lately.

A better-ranked stock from the same space that investors can consider is Ubiquiti Networks, Inc. UBNT, sporting a Zacks Rank #1 (Strong Buy).

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ERICSSON LM ADR (ERIC): Free Stock Analysis Report
 
QUALCOMM INC (QCOM): Free Stock Analysis Report
 
VODAFONE GP PLC (VOD): Free Stock Analysis Report
 
UBIQUITI NETWRK (UBNT): Free Stock Analysis Report
 
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