Core Insights - Global mobile network data traffic is projected to grow almost 200 percent between 2024 and the end of 2030, with a forecast of 6.3 billion global 5G subscriptions by 2030, of which 60 percent are expected to be 5G Standalone (SA) [1][5] Industry Trends - The growth rate of mobile network traffic data is estimated at 21 percent year-on-year for 2024, but it is still expected to increase almost three-fold by the end of 2030 compared to current levels [2] - The report emphasizes the importance of service differentiation and performance-based opportunities as the industry evolves, with a shift towards high-performing programmable networks [4] Service Provider Insights - Less than 20 percent of the approximately 320 communications service providers (CSPs) currently offering commercial 5G services are utilizing 5G SA, indicating a significant opportunity for growth in this area [5] - The densification of mid-band and 5G SA sites is seen as a key catalyst for realizing the full potential of 5G, including programmable and intelligent network capabilities [5] 5G Network Impact - By the end of 2030, 5G networks are expected to carry about 80 percent of total mobile data traffic, compared to 34 percent by the end of 2024 [6] - Fixed Wireless Access (FWA) is gaining popularity globally, with 52 percent of CSPs in Western Europe now offering speed-based tariff plans, up from 30 percent a year ago [7][8] Future Projections - Global 5G subscriptions are projected to reach almost 2.3 billion by the end of 2024, accounting for 25 percent of all global mobile subscriptions, with 5G subscriptions expected to surpass 4G subscriptions by 2027 [10] - The first 6G deployments are anticipated in 2030, building on the capabilities of 5G SA and 5G Advanced [10] Case Studies - The report includes case studies from T-Mobile (U.S.A.), Elisa (Finland), and stc (KSA), showcasing real-world applications of network slicing and premium FWA services [3][11]

Ericsson (ERIC) has surged 62% over the past year compared with the industry’s growth of 43.2%, outperforming peers like Nokia Inc. (NOK) and Motorola Solutions Inc. (MSI) .Ericsson is well-positioned to capitalize on the market momentum with a competitive 5G product portfolio. With a holistic growth focus, the company strives to be the leading telecommunications infrastructure provider worldwide and establish a focused enterprise business.One-Year Price PerformanceImage Source: Zacks Investment ResearchERI ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the ...

The Zacks Wireless Equipment industry is plagued by large-scale investments for seamless 5G migration, eroding profits due to escalated price wars, high customer inventory levels and inflated raw material costs. Moreover, a challenging macroeconomic environment, prolonged geopolitical conflicts and uncertain business conditions continue to weigh on margins. However, the transition to cloud and fiber network infrastructure upgrades should help the industry in the long run. Despite short-term headwinds, Qualc ...

Partnership Overview - Ericsson and MasOrange, Spain's largest communications service provider, have entered a five-year Open RAN-ready future-network partnership [1] - The partnership aims to position MasOrange at the forefront of Europe's open and programmable networks [1] - The collaboration is seen as a decisive moment for both MasOrange and the European telecommunications industry [4] Network Integration and Deployment - Ericsson will integrate Orange Spain's and MASMOVIL's existing networks, supporting the consolidated MasOrange network with high-performing and sustainable solutions [2] - The project will run in parallel with the deployment of Ericsson-powered 5G Standalone (5G SA) in rural areas of Spain, starting in October 2024 [3] - Upon completion, MasOrange will have one of the most extensive, high-capacity, and modern 5G Standalone mobile networks in Europe [3] Technological Advancements - The partnership will utilize Ericsson's latest Massive MIMO antenna-integrated radios and RAN Compute solutions, compatible with Open RAN, to significantly increase performance and lower costs [5] - The deployment of 5G Massive MIMO Time Division Duplex (TDD) technology will boost network capacity and user experience by allowing greater data transmission through multiple spatial channels [7] - Network optimization and densification will be implemented to increase network performance, coverage, and capacity, addressing the growing demand for 5G services in urban and rural areas, as well as large venues like stadiums [8] Strategic Vision - The collaboration is expected to drive technological advances and sustainable growth in the telecommunications industry [4] - Ericsson's vision for the industry is based on open and programmable networks with capabilities exposed through network APIs, leveraging an ecosystem of developers to drive rapid innovation and growth [4] - The partnership will enable MasOrange to provide differentiated and innovative 5G services, ensuring a more flexible and dynamic mobile-first environment [6]

Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today: Hyster-Yale, Inc. (HY) : This lift trucks, attachments, and aftermarket parts company has seen the Zacks Consensus Estimate for its current year earnings increasing 6.7% over the last 60 days. HashiCorp, Inc. (HCP) : This multi-cloud infrastructure automation solutions company has seen the Zacks Consensus Estimate for its current year earnings increasing 92.9% over the last 60 days. Tilray Brands, Inc. (TLRY) : This medical cannabis pr ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Eve ...

The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Ericsson (ERIC) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question. Ericsson is one of 621 companies in the Computer and Technology group. The Computer and Technology group currently sits at #1 within the Zacks Sector Rank. The ...

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks. Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of ...

Financial Data and Key Metrics Changes - Organic sales declined by 1% in Q3 2024, showing gradual improvement compared to the previous quarter [6][16] - Gross margin improved to 46.3% from 39.2% in Q3 2023, driven by a favorable market mix and operational optimizations [6][18] - EBITDA increased to SEK 7.8 billion from SEK 4.7 billion year-over-year, indicating strong underlying business performance [7][18] - Free cash flow was SEK 12.9 billion, reflecting improved profitability and lower working capital [7][24] Business Line Data and Key Metrics Changes - In the Networks segment, organic sales were flat with a slight decline of 1%, while North America grew by 80% year-over-year [20][16] - Cloud Software and Services saw a year-on-year decline of 1% in organic sales, primarily due to lower service sales [21] - Enterprise sales declined by 3%, but Enterprise Wireless Solutions grew by 7% [22][23] Market Data and Key Metrics Changes - North America showed strong growth, increasing by 55% year-over-year, driven by the AT&T contract [7][8] - Sales in Europe and Latin America increased slightly by 1%, while Southeast Asia, Oceania, and India saw a 43% decrease due to normalization after a record 5G rollout [8][16] - The global RAN market remained challenged, with significant slowdowns in customer investments in Northeast Asia, the Middle East, and Africa [8][16] Company Strategy and Development Direction - The company aims to build the networks of the future through programmable networks, focusing on new use cases beyond consumer mobile broadband [3][4] - A joint venture with 12 global CSPs was announced to aggregate and sell network APIs, which is seen as a critical step for monetizing 5G capabilities [5][10] - The strategy includes divesting non-core assets, such as the sale of iconectiv, to streamline operations and focus on core opportunities [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging market but expressed optimism about the gradual improvement in sales and the strong performance in North America [6][26] - The company expects network sales to stabilize year-over-year in Q4, but anticipates further pressure in the Enterprise segment [26][27] - Long-term growth is dependent on finding new revenue streams for customers beyond consumer mobile broadband subscriptions [27][28] Other Important Information - IPR licensing revenues increased to SEK 3.5 billion from SEK 2.8 billion year-over-year, with expectations to reach at least SEK 13 billion for 2024 [17] - Adjusted gross margin in the Enterprise segment increased to 52.4%, but the adjusted EBITDA loss was SEK 0.8 billion due to higher operating expenses [23] Q&A Session Summary Question: Clarification on AT&T contract ramp and Q4 outlook - Management indicated that the ramp-up in North America was high in Q3 but is expected to normalize in Q4, impacting revenue seasonality [30] Question: Comments on gross margin guidance - Management noted that cost-saving activities and productivity improvements contributed to better-than-expected gross margins [33] Question: Future dividend or buyback plans - Management stated that decisions regarding dividends or buybacks are for the board to discuss, emphasizing a strong financial position [34] Question: Impact of programmable networks on future growth - Management sees programmable networks as foundational for creating monetization opportunities, linking them to enterprise growth [39][40] Question: Slowdown in Enterprise Wireless Solutions - Management attributed the slowdown to a focus on profitable market segments and product transitions, with expectations for recovery as new products gain traction [44] Question: Competitive environment in the RAN market - Management reported no significant changes in competitive pressures, maintaining a disciplined approach to contract wins [50] Question: Outlook for India market performance - Management expressed optimism about long-term growth in India, driven by digitalization and new contract wins, but advised waiting for better visibility before making forecasts for 2025 [76]