Ericsson (ERIC – Free Report) recently renewed its collaboration with Beyon to further expand their joint sustainability initiatives and circular economy practices, focusing on building energy-efficient networks in Bahrain. This collaboration, initially established in early 2024, aimed at accelerating both companies’ journey toward a Net Zero future while addressing waste management from Electronic and Electrical Equipment.
How ERIC Solutions Have Helped Beyon Achieve Its Goals?
The Memorandum of Understanding signed between the two companies is designed to reduce Beyon’s environmental footprint, particularly in terms of energy consumption and carbon emissions from the live networks operated by Batelco, part of the Beyon Group, leveraging Ericsson’s sustainable solutions.
Batelco’s network has experienced a 30% reduction in energy consumption, driven by the deployment of Ericsson’s state-of-the-art 5G Radio Access Network solution. It efficiently supports a wide range of use cases such as cloud gaming, virtual reality applications, autonomous driving, fixed wireless access and more, generating revenue streams for service providers.
Additionally, energy-saving software features, such as Cell Sleep Mode and AI-powered MIMO Sleep Mode, have been activated at various pilot sites. These innovations have resulted in an average 22% reduction in energy usage on sites where the features were applied. Further energy savings of 18% have been achieved by utilizing the Interleaved AIR 3218, a single-antenna footprint that replaced the AIR 3227. This change has helped to optimize the 5G Massive MIMO technology while overcoming space limitations on rooftops and towers.
Apart from energy savings, the collaboration emphasizes circular economy practices. As part of the effort, an e-waste recycling initiative was launched under the Ericsson Product Take-Back Program, enabling Beyon to recycle outdated electronic and electrical equipment responsibly and supporting the group’s broader e-waste management goals.
Does ERIC Stand to Gain From the Renewed Collaboration?
Ericsson’s innovative solutions reshape connectivity across sectors, from enhancing network visibility through advanced 5G deployments to revolutionizing industries with robust IoT innovations. Through this collaboration, Ericsson continues to demonstrate the critical role that technology can play in supporting sustainability goals.
By leveraging its expertise, Ericsson has helped Beyon achieve measurable energy savings and accelerate its progress toward a Net Zero future. This renewed partnership further strengthens the long-standing relationship between Ericsson and Beyon, highlighting their shared commitment to enhancing network efficiency and environmental performance across the region.
Such partnerships will likely propel ERIC’s stock with incremental revenue generation. The deal is also expected to strengthen Ericsson’s position as a leading telecommunications service provider in the region.
ERIC’s Stock Price Performance
Shares of Ericsson have gained 28.9% over the past year compared with the industry’s growth of 27.4%.
Image Source: Zacks Investment Research
ERIC’s Zacks Rank and Stocks to Consider
Ericsson currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader industry have been discussed below.
Ubiquiti Inc. (UI – Free Report) sports a Zacks Rank #1 (Strong Buy) at present. In the last reported quarter, Ubiquiti delivered an earnings surprise of 20.9%. Its highly flexible global business model remains apt to adapt to the changing market dynamics to overcome challenges while maximizing growth. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company’s effective management of its strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques.
InterDigital, Inc. (IDCC – Free Report) sports a Zacks Rank of 1 at present. It has a long-term growth expectation of 17.44%.
IDCC pioneered advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops various advanced technology solutions for digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.
Workday Inc. (WDAY – Free Report) carries a Zacks Rank #2 (Buy) at present. In the last reported quarter, it delivered an earnings surprise of 7.36%.
WDAY is a top supplier of enterprise-level software solutions for human resources and finance management. The company’s cloud-based platform makes it simpler for businesses to offer analytical insights and decision support by integrating finance and human resources into a single system.
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