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Ericsson ERIC recently announced that it has entered into an agreement with Econet Wireless Zimbabwe to expand the latter’s telecommunications infrastructure by boosting network scalability, reliability and unlock advanced capabilities such as automation and virtualization. Ericsson and Econet has a long-standing business relationship spanning decades. In 2023, Econet utilized Ericsson’s cloud-native dual-mode 5G Core solution to upgrade its core network and accelerate 4G and 5G installation.
In the current venture with Ericsson, Econet is integrating 5G Core cloud-native network functions to launch 5G standalone across its network. This will empower Econet to augment its mobile broadband capabilities, match the rising demand for data traffic and support advanced use cases from both individual and enterprise customers. Ericsson will offer Econet lifecycle management for its current and new Virtual Network Function and Cloud Network Function nodes. The advanced infrastructure will deliver greater cost and power efficiency and effectively facilitate Econet’s Network Function Virtualization and Ericsson Cloud Native Infrastructure Solution for rising workloads. ERIC will also provide a Cloud Core Exposure Server to enable Econet to give developers secure access to the latest core network functionalities. These features from Ericsson’s solution will significantly bolster Econet’s network capabilities.
Recently, Ericsson also collaborated with UNITEL, a prominent communication company in Angola, which has leveraged Ericsson’s comprehensive solution suite to complete its network modernization initiatives. In this venture, Ericsson has installed its dual-mode 5G Core solutions to support the migration from 2G and 3G services to 4G and 5G services. ERIC also deployed IP Multimedia Subsystem to deliver real-time communication for both business and individual users.
Will This Venture Drive ERIC’s Share Performance?
The availability of consistent network connectivity allows people to seamlessly access education, healthcare, financial and several other critical services. Lack of network access can undermine socio-economic growth and development. To address these issues and foster digital inclusivity, several government and telecom operators are undertaking various initiatives to expand their network capacity and coverage. Ericsson, with its comprehensive network portfolio, is well-positioned to capitalize on this trend. This bodes well for long-term growth.
Ericsson is witnessing headwinds in the Africa region for the last few quarters due to macroeconomic challenges, forex volatility, intense price competition and lower customer spending. The recent customer wins will likely strengthen its foothold in the region.