Ericsson (ERIC, Financial) has forged a new alliance with GCI Communication to overhaul GCI’s network infrastructure and expedite its transition to cloud-native technology. This strategic agreement introduces advanced cloud-core innovations alongside AI tools, designed to tackle the growing complexity of network systems.
The collaboration marks a crucial move towards integrating advanced 5G service capabilities into GCI’s network. Currently, Ericsson supports GCI’s networks across 3G, 4G, and 5G Non-Standalone (NSA) technologies. Notably, GCI’s 5G NSA network was the first of its kind in Alaska, launched back in 2020.
Under this new arrangement, GCI plans to enhance its existing network with a dual-mode 5G Core, setting the stage for the upcoming 5G Standalone (SA) services. Ericsson will manage the current network, which includes 3G, 4G, and 5G NSA components, while also operating the newly introduced cloud-native core platform tailored for 5G SA functionalities.
Through its Intelligent Operations Center, Ericsson will oversee the network’s operation on behalf of GCI, efficiently maintaining the current core network and embracing the new 5G SA-ready infrastructure. This partnership capitalizes on the strengths of both companies, ensuring robust connectivity and superior network services for Alaskan residents.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Telefonaktiebolaget L M Ericsson (ERIC, Financial) is $6.95 with a high estimate of $8.54 and a low estimate of $5.60. The average target implies an downside of 4.63% from the current price of $7.29. More detailed estimate data can be found on the Telefonaktiebolaget L M Ericsson (ERIC) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, Telefonaktiebolaget L M Ericsson's (ERIC, Financial) average brokerage recommendation is currently 3.2, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Telefonaktiebolaget L M Ericsson (ERIC, Financial) in one year is $5.72, suggesting a downside of 21.54% from the current price of $7.29. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Telefonaktiebolaget L M Ericsson (ERIC) Summary page.
