Ericsson gives Community Instrument, CommScope Antenna & Extra
U.S. telecom stocks have been relatively flat on average for the past week as the industry continued to experience strained undercurrent due to new restrictions imposed by the Biden government on China-based telecom equipment manufacturers. The communist nation protested strongly against the unilateral decisions and further strained diplomatic relations between the countries. Although President Biden has pledged to maintain better relations with Beijing, the lack of concrete efforts to reverse his predecessor’s previous sanctions has created a sense of insecurity in the industry as it continued to keep the government prudent for future action.
In particular, the administration changed some licenses for companies supplying raw materials to Huawei, which put certain pre-existing contracts at risk. The changed conditions make it rather impossible for companies to supply items that can be used with 5G devices, even if these items have nothing to do with the 5G function. At the same time, the FCC blacklisted Huawei along with four other China-based telecommunications companies – ZTE, Hytera Communications, Hangzhou Hikvision Digital Technology, and Dahua Technology – identifying them as a national security threat. This in turn is likely to prohibit domestic companies from using their communication devices or services. The FCC has also kicked off the approval of China Unicom Americas, Pacific Networks and its wholly owned subsidiary ComNet to provide US telecommunications services.
Meanwhile, cyber espionage attempts to steal sensitive information related to 5G technology have recently increased as the political battle for 5G supremacy continued. However, the Biden administration has no plans for state surveillance of the US internet as it continues to consider the potential impact on privacy and civil liberties. Instead, the government plans to focus on strong partnerships and improved information sharing with private sector companies that already have broad insight into the home internet to prevent cyber theft and data intrusion.
In terms of company-specific news, collaborations and product launches, the focus was on delivering 5G over the past five trading days.
The story goes on
Review of the week’s most important stories
1. Ericsson With 5G Core Policy Studio, ERIC has unveiled a groundbreaking network programmability tool that aims to modernize network services and help communication service providers (CSPs) centrally manage end-to-end 5G core network policies. Network policies are a set of guidelines that regulate the behavior of users, devices, and applications on the network. It’s also helpful for making real-time political decisions.
At a time when providing differentiated services in a dynamic telecommunications industry has become a challenge in the face of rapid technological change, this software solution is a boon to enable CSPs to configure advanced services for businesses and consumers within network slices. These services are specially tailored to the personalized needs of different end users.
2. CommScope Holding Company, Inc. COMM recently unveiled innovative antenna solutions for faster and easier 5G deployment. Along with its existing line of products, the company has expanded the capabilities of operators to accelerate the 5G rollout for superior data connectivity and broadband facilities across different gateways.
CommScope has introduced C-band antennas that allow operators to replace the existing multiband antenna with one with C-band functionality without resizing, eliminating costly structural changes or increasing lease fees. The company has also released CBRS antennas that support sub-6 GHz bands. These antennas use twin beam technology, which effectively doubles the capacity of the cell site and enables deployment in six sectors. They enable network operators to increase network performance while reducing total cost of ownership.
3. Nokia Corporation NOK has a contract with Antina Pte. Ltd. – a joint venture between the mobile network operators M1 and StarHub – starts the independent 5G radio access network in Singapore. In addition to providing support for new use cases for consumers and businesses to seamlessly deliver 5G services, the partnership aims to advance the digital economy in the Southeast Asian nation.
In particular, Nokia was selected for the project through a tender process. Using the 3.5 GHz frequency band, the company will offer telecommunications equipment from its AirScale and CloudRAN portfolio to provide 5G services in the region.
4th Ciena Corporation CIEN has announced a partnership with a major communications provider – Aqua Comms – to modernize their transatlantic submarine cable routes with the industry’s best AI (artificial intelligence) capabilities. In addition, Ciena will upgrade two subsea networks – America Europe Connect-1 (AEC-1) and America Europe Connect-2 (AEC-2) – using its GeoMesh Extreme submarine network solution.
Significantly, the upgrade initiative is primarily aimed at improving Aqua Comms’ submarine network capacity while meeting the demands for peak traffic and digital connectivity between the US and Europe.
5. Stepping up efforts to build an optimized connectivity infrastructure, 100% owned by Bell BCE Inc. BCE recently announced that it would support the high-speed internet delivery process across Quebec. The company is well known for providing superior fiber optic technology with state-of-the-art broadband TV and home phone services to multiple business and residential customers.
Bell is recognized as a pioneer in delivering high-speed internet to rural Quebec communities, along with its expanding fiber optic and wireless home internet (GHI) networks. What was impressive was that the company had expanded its WHI service rollout in rural communities, which included 137,000 additional homes by the end of April 2020, to respond to the COVID-19 situation.
Value for money
The following table shows the price movement of some of the major telecommunications stocks over the past week and six months.
For the past five trading days, Verizon was the top performer with stocks gaining 2.2%, while Bandwidth was the biggest loser, falling 12.8%.
Over the past six months, Arista was the best performer with a stock of 27.9%, while the bandwidth lost its maximum at 47.4%.
Over the past six months, the Zacks Telecommunications Services industry has grown an average of 1.6% while the S&P 500 has gained 16.8%.
What’s next in telecommunications?
In addition to 5G deployments and product launches, all eyes will be on how the Biden administration protects the telecommunications sector from likely external threats.
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