Ericsson ERIC has successfully completed an innovative 5G slicing automation project in Belgium in collaboration with the telecommunication company Orange Belgium. The project, funded by the Belgian State Federal Public Service Economy under its “Telecom to the next level - toward sustainable and innovative solutions” program, represents a major leap forward in automating the management of 5G network slices, offering a critical foundation for future enterprise applications.

Digging Deep Into ERIC-Orange Belgium Collaboration

At the heart of the project is the deployment of Ericsson’s state-of-the-art Service Orchestration and Assurance platform. By connecting with various domain managers and controllers, this multi-domain, multi-technology solution enables seamless cross-domain service orchestration and assurance across access, transport and core networks. 

This is the first time the solution has been used to seamlessly create and manage end-to-end 5G network slices across core and radio network domains in a multi-vendor and shared radio access network scenario. MWingz, a joint venture between Orange Belgium and Proximus, supported the integration, ensuring smooth coordination between Ericsson’s orchestration platform and the shared radio network infrastructure, contributing to the overall success of the initiative.

A major achievement of the project was the automated lifecycle management of 5G network slices, customized to meet the needs of enterprise customers. These slices were tested in a live enterprise setting, showcasing their scalability and practical applications for industries requiring secure, high-performance and low-latency connectivity.

Does ERIC Stand to Gain From the Development?

With the emergence of the smartphone market and subsequent usage of mobile broadband, user demand for coverage speed and quality has increased recently. Ericsson is focusing on 5G system development and has undertaken many notable endeavors to position itself for market leadership on 5G.

Ericsson's innovative solutions are reshaping connectivity across sectors, from enhancing network visibility through advanced 5G deployments to revolutionizing industries with robust IoT innovations. With this successful demonstration, Ericsson has highlighted the future possibilities of 5G network slicing, paving the way for a new era of advanced, flexible and customizable network services. This development not only boosts the telecom sector's capabilities but also lays the foundation for the digitization of businesses and communities, helping drive Belgium’s 5G ecosystem forward.

These advancements are expected to generate incremental demand for Ericsson’s solutions, leading to higher revenues. An improved financial performance is likely to propel the stock upward.

ERIC’s Stock Price Performance

Shares of Ericsson have gained 67.9% over the past year compared with the industry’s growth of 43.8%.

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ERIC’s Zacks Rank and Stocks to Consider

Ericsson currently carries a Zacks Rank #3 (Hold).
 
Some better-ranked stocks in the broader industry have been discussed below.

Plexus Corp. PLXS sports a Zacks Rank of 1 (Strong Buy) at present. It is a leading provider of electronic contract manufacturing services to original equipment manufacturers (OEMs) in a wide range of industries, including Healthcare/Life Sciences, Industrial and Aerospace/Defense market sectors. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the last reported quarter, PLXS delivered an earnings surprise of 20.92%.

Arista Networks, Inc. ANET carries a Zacks Rank of 2 (Buy) at present. It supplies products to prestigious customers, including Fortune 500 global companies in markets such as cloud titans, enterprises, financials and specialty cloud service providers.

In the last reported quarter, ANET delivered an earnings surprise of 14.83%. It has a long-term growth expectation of 16%.  

Workday Inc. WDAY carries a Zacks Rank #2 at present. In the last reported quarter, it delivered an earnings surprise of 7.36%.

WDAY is a top supplier of enterprise-level software solutions for human resources and finance management. The company's cloud-based platform makes it simpler for businesses to offer analytical insights and decision support by integrating finance and human resources into a single system.

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