Ericsson (NASDAQ: ERIC), a Sweden based multinational provider of communication technology and services, said it has joined Chinese state-owned telecommunication company China Mobile Limited’s 5G Joint Innovation Center program.
The program has been designed to establish a cross-industry ecosystem and to develop an open lab to provide a platform for indigenous products and applications that will in turn unlock lucrative business and market opportunities for telecom operators. Development of the program come close right after the 5G network-related announcement made by companies at the Mobile World Congress 2016. Other industry partners participated in this joint program including Huawei, ZTE, Nokia, Qualcomm, Datang and Intel.
The transformation of the information and communication technology is impending, indicating a competitive market in the near future. Thus, collaborations with industry frontrunners will help the company to quickly gain a foothold in the market. Ericsson also believes that joining this 5G program will speed up the process of creating next-generation wireless networks that will offer unprecedented power and performance. In fact, Ericsson and the China Mobile Research Institute have signed a Memorandum of Understanding (MoU) in earlier 2016, forming a symbiotic partnership to co-create Open Network Functions Virtualization (“NFV”) Lab to addressing the telecom cloud space and the NovoNet to create next-generation networks.
As the world’s largest supplier of LTE technology, Ericsson remains in constant lookout for business opportunities as operators shift toward 4G deployments and prepare for the forthcoming 5G revolution. Shares of Ericsson has dropped from over $13 to around $9 in the past 52 weeks. Yet most analysts on Wall Street believes that it could soar to $14.46 in a year.