A new frontier, the 5G boom is just around the corner and 6G is already being worked on! Investors are betting big on Ericsson (ERIC) stock. With their recent acquisition of Cradlepoint, the company is now officially covering all sectors of telecommunication including the consumer and enterprise segments.
What’s going on now with Ericsson (ERIC)
With the Cradlepoint acquisition now completed, Cradlepoint will start to see contributions to Ericsson’s operating cashflow in 2022.
Through Cradlepoint’s solutions, companies can connect sites, vehicles, mobile workforces, and IoT devices in a simple and secure way using cellular technology. By leveraging the combined offering, Ericsson will be able to create valuable new revenue streams for its customers by supporting 5G-enabled services for enterprise, and boost returns on investments in the network. Ericsson’s global presence and long-standing relationships with the world’s leading service providers will also help accelerate Cradlepoint’s international expansion.
Cradlepoint will operate as a stand-alone subsidiary within Ericsson and continue to build on the current market momentum as 5G is speeding up digital transformation and increasing the need for advanced connectivity services for enterprises. Cradlepoint will be part of Ericsson’s Business Area Technologies & New Businesses.
Cradlepoint will continue to be headquartered in Boise, Idaho, USA. In addition to the company headquarters, Cradlepoint operates a research and development center in Silicon Valley, California, and international offices in the United Kingdom and Australia.
Ericsson (ERIC) forms partnership with Telstra (OTC:TLSYY)
- Following a successful 5G edge computing trial with an Australian financial institution in 2019, Ericsson and Telstra are now developing an enterprise solution with an extension into the hybrid cloud space
- This collaboration will serve as a catalyst for further innovation, unlocking new potential enterprise use cases in sectors such as agriculture, industrial IoT, enterprise branch services and smart cities.
The companies have announced they will collaborate to develop an enterprise edge cloud solution developed specifically for the Telstra domain. This collaboration builds on the 2019 announcement between Ericsson, Telstra and an Australian financial institution, to trial 5G edge computing technologies for the financial services sector.
This new partnership will help drive innovation across industries by developing solutions to enable seamless orchestration, network exposure and service assurance. These capabilities will help make consumption-based interfaces between cloud providers and the Telstra network possible. With agile, enterprise-tuned network services across its network, Telstra will be able to promote enhanced services for enterprise customers.
The new enterprise edge cloud solution is expected to be delivered within months and will act as a catalyst for the development of a reusable and open framework. With this solution, the Telstra network will be able to cater to unique customer needs, where network services can be offered either on the edge or on-premise.
Ericsson and Telstra will continue to explore solutions for various industries over the coming months. These industries will benefit from repeatable design and orchestration of edge computing’s foundational capabilities for use cases with high requirements on scalability, security, availability, low latency and bandwidth.
New potential enterprise use cases for agriculture, industrial IoT, enterprise branch connectivity services and smart cities, will unlock the potential of innovation by bringing new services to their customers.
Ericsson (ERIC) and the 5G frontier
The Next G Alliance is a bold new initiative to advance North American mobile technology leadership over the next decade through private sector-led efforts. With a strong emphasis on technology commercialization, the work will encompass the full lifecycle of research and development, manufacturing, standardization and market readiness.
What’s the goal of Next G Alliance?
- Advance North American global leadership over the 5G evolutionary path and 6G early development.
- Create a Next G development roadmap that will promote a vibrant marketplace for 6G introduction, adoption and commercialization with North American innovation in mind.
- Develop a set of national priorities that will influence government applied research funding and promote incentivized government actions.
- Progress a North American model that promotes development across the full lifecycle of research to realization, aligned with commercialization outcomes.
Other regions of the globe have announced and are implementing ambitious plans to launch 6G research and development initiatives. It is critical that North American industry steps forward now to create the roadmap to the next decade of strong global mobile technology leadership. Ultimately, this initiative will be used to influence U.S. government funding priorities and actions that will incentivize the technology industry, laying the foundation for a vibrant marketplace for North American products and services globally.
Should you invest in this new frontier?
Absolutely, investment analysts and Wall Street like Ericsson (ERIC). In particular, they like its position in the global race to build out 5G infrastructure. That is an ongoing process, with no end in sight. There are risks in that market, including the potential for recession and competition from Chinese firms like Huawei. However, Ericsson has continued to grow its lead in the market. Its recent acquisition of Cradlepoint also expands the company’s presence in the enterprise 5G market.