Will ERIC Stock Benefit From 5G Deployment Across Vietnam?
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Ericsson ERIC has inked an agreement with Viettel for an undisclosed amount to help create a robust digital infrastructure in Vietnam and provide superior 5G connectivity across the country. The deal strengthens the long-term business relationship between Ericsson and the state-owned telecommunications conglomerate and paves the way for developing an innovative 5G ecosystem in the Southeast Asian nation.
Here's What the ERIC-Viettel Deal Brings to the Table
Per the deal, the two firms will work in unison to offer seamless 5G connectivity throughout the majority of provinces in Vietnam. This will entail Ericsson to provide network optimization by applying industry-leading AI-powered technologies and predictive network data to achieve the maximum potential. The firms will also aim to ensure optimum performance by effectively managing Ericsson Radio System products.
Ericsson Radio System comprises hardware, software and services for radio, Radio Access Network (RAN) Compute, antenna system, transport, power and site solutions. It enables a smooth and cost-effective migration from 4G to 5G, supporting communications service providers to launch the avant-garde technology and expand the 5G coverage fast. The company’s 5G radio access technologies provide the infrastructure required to meet the growing demand for high-bandwidth connections and support the real-time, low-latency, high-reliability communication requirements of mission-critical applications.
Leveraging 5G RAN, Ericsson will deploy state-of-the-art network connectivity across the capital, Hanoi and the north and central parts of Vietnam while modernizing Viettel’s 4G network for future 5G Standalone deployment with the potential to introduce new services. This, in turn, is expected to drive 5G commercialization, contributing to the country’s overall economic growth by unlocking the full potential of Industry 4.0 applications.
How ERIC Could Have Secured the Deal?
With the emergence of the smartphone market and the subsequent usage of mobile broadband, user demand for coverage speed and quality has increased exponentially. Further, to maintain the performance with increased traffic, there is a continuous need for network tuning and optimization. Ericsson, being one of the premier telecom service providers, is much in demand among operators to expand network coverage and upgrade networks for higher speed and capacity. It is reportedly the world’s largest supplier of LTE technology with a significant market share and has established a large number of LTE networks worldwide.
To date, Ericsson has secured 166 commercial 5G agreements with unique communication service providers. The company is increasingly focusing on 5G system development to capitalize on the upcoming market opportunities. The company believes that the standardization of 5G is the cornerstone for the digitization of industries and broadband. Moreover, Ericsson foresees mainstream 4G offerings to give way to 5G technology in the future.
