In a concerted effort to augment the benefits of 5G technology, Qualcomm Incorporated QCOM recently joined forces with a leading tech behemoth — Ericsson ERIC. Markedly, the companies successfully concluded interoperability tests, which demonstrate the feasibility of 5G connectivity on the back of much talked-about carrier aggregation technology. This pioneering achievement of industry forerunners marks a significant milestone in an era when telecom companies are automating operations, while making seamless migrations from 4G to 5G technology.
Qualcomm and Ericsson have been working for quite some time now related to the development and commercialization of a standalone (SA) core 5G network worldwide. Apparently, these two companies conducted a trial run last year leveraging Qualcomm’s Snapdragon X55 5G Modem-RF System. The test was compliant with 3GPP 5G NR specifications, thereby enabling service providers and global OEMs to unleash the full potential of 5G as well as network slicing in enterprise-grade cloud services and Industrial IoT. Notably, the latest 5G trial success is expected to not only reinforce the close-knit relationship between the companies but also enhance the overall 5G experience across global markets.
The carrier aggregation test for 5G technology was conducted at Ericsson's labs in Beijing, China. Markedly, carrier aggregation technology refers to an amalgamation of two or more channel spectrums into a unified data channel to enhance data throughput capacity. As part of the trial, the tech bellwethers witnessed top-speed of 2.5 Gbps in a 70% downlink configuration by combining 60 MHz and 100 MHz within 2.5 GHz Time Division Duplex (TDD) spectrum. In early 2020, Verizon Communications Inc. VZ had collaborated with Qualcomm and other tech giants to check the efficacy of 5G Ultra-Wideband network, thereby achieving peak speeds of 4.2 Gbps on its live 5G network.
Apart from the 5G SA test in China, Qualcomm and Ericsson had conducted another trial in Sweden that showcased the viability of data calls using the carrier aggregation technology. Apparently, they aggregated 20 MHz carrier from the 600 MHz Frequency Division Duplex band with 100 MHz carrier from the 2.5 GHz TDD band. The 5G infrastructure equipment utilized in these tests were a 5G-backed smartphone device powered by Qualcomm’s Snapdragon X60 5G Modem-RF System along with Ericsson Radio System. With the completion of this significant milestone, 5G network performance is expected to improve when mass deployments take place in 2021.
Leveraging on such indigenous products and technology collaborations, Qualcomm aims to retain its leadership in 5G, chipset market and mobile connectivity. It is one of the largest manufacturers of wireless chipset based on baseband technology. The San Diego, CA-based wireless technology company is focused on three areas — computing, connectivity and electrification. With more than 150 5G design wins, Qualcomm is reportedly the only chipset vendor with 5G system level solutions covering both sub-6, gigahertz and millimeter wave bands. Also, it is helping customers experience a seamless transition to super-fast 5G networks, delivering low-power resilient multi-gigabit connectivity with best-in-class security. Markedly, Qualcomm aims to expand its product portfolio and develop mobile phone chips for the masses.
Qualcomm has a long-term earnings growth expectation of 19.8%. Shares of this Zacks Rank #2 (Buy) company have soared 51.8% compared with the industry’s growth of 24.9% in the past year.
Another top-ranked stock in the industry is Clearfield, Inc. CLFD, carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Clearfield has a trailing four-quarter earnings surprise of 45.6%, on average.
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