Ericsson Ties Up With Industry Giants to Showcase Ultra-Low-Latency 5G

Ericsson ERIC has joined forces with SoftBank Corp. and Qualcomm Technologies, Inc. QCOM to complete a real-world field trial demonstrating ultra-low-latency communication on SoftBank’s commercial 5G Standalone (5G SA) network in Tokyo. The trial achieved an approximately 90% reduction in wireless link latency compared to conventional 5G scenarios that do not utilize advanced 5G and 5G Advanced technologies such as Low Latency, Low Loss and Scalable Throughput (L4S).

To validate real-time performance, the companies selected XR content streaming as the primary use case. Smart glasses were connected to a smartphone via Wi-Fi, while the smartphone accessed SoftBank’s 5G SA network through designated 5G base stations. Data was exchanged with application servers hosted on the public Internet, reflecting realistic deployment conditions. XR applications are extremely sensitive to communication delays. Even minor latency or jitter can negatively impact visual stability and user comfort. The success of this trial demonstrates that advanced 5G technologies can meet the strict performance requirements of immersive applications.

The use of network slicing ensured that XR traffic received guaranteed performance without affecting other users, highlighting a key capability for future service differentiation.

Key 5G and 5G Advanced Technologies

Several standardized 3GPP technologies were integrated to achieve the low-latency results. L4S (Low Latency, Low Loss and Scalable Throughput) leverages Explicit Congestion Notification to detect early signs of congestion and adjust transmission rates in real time. By preventing packet buildup before congestion becomes severe, L4S ensures stable and consistently low latency.

Configured Uplink Grant feature simplifies uplink transmission procedures by allowing mobile devices to send data immediately based on pre-configured schedules. It significantly reduces uplink delay, which is essential for real-time XR interactions. With Rate-Controlled Scheduling base stations dynamically manage radio resources to maintain consistent throughput. This stabilizes XR video rendering and interaction responsiveness.

ERIC’s Role in 5G Advanced Commercialization

Ericsson’s contribution demonstrates its ability to translate 5G Advanced standards into real-world deployments. Successfully implementing L4S and advanced scheduling on a live network positions Ericsson as a key enabler for operators preparing for latency-sensitive services well ahead of the transition to 6G.

On the other hand, Qualcomm highlighted the importance of distributed spatial computing, where processing is shared between XR devices and the cloud. Snapdragon XR platforms, combined with ultra-low-latency 5G connectivity, enable lightweight smart glasses to deliver rich, immersive experiences—accelerating adoption across consumer and enterprise markets.

5G Momentum Favors ERIC Amid Geopolitical Turbulence

Ericsson is well-positioned to capitalize on strong global 5G momentum, supported by its competitive product portfolio and sustained R&D investments that reinforce its technology leadership. The company is executing its strategy to strengthen mobile infrastructure while building a focused enterprise business, with acquisitions such as Vonage, Cradlepoint and Ericom expanding its wireless enterprise and security capabilities.

Ericsson’s patent licensing business remains robust, backed by a strong IPR portfolio, while increased investments in Digital Services and Networks are driving automation, cost efficiency and selective market share gains. Together, strategic buyouts and continuous innovation are expected to accelerate commercial expansion and solidify Ericsson’s position in the wireless equipment market.

However, Ericsson’s business faces headwinds from geopolitical tensions and macroeconomic uncertainty across key markets. A lower market share has led to revenue declines in China within the Networks and Digital Services segments, while Sweden’s ban on Chinese vendors in 5G networks may further impact its operations there. Supply-chain disruptions and intense competition from Huawei and Nokia add to the pressure, alongside revenue weakness in Southeast Asia, Oceania and India due to reduced operator capex spending.

ERIC’s Zacks Rank & Stock Price Performance

Ericsson, carrying a Zacks Rank #2 (Buy) at present, has gained 18.9% over the past year compared with the Zacks Wireless Equipment industry’s growth of 21.7%.

Stocks to Consider From the Computer and Technology Space

Some better-ranked stocks from the broader technology space are Ubiquiti Inc. UI and Clearfield, Inc. CLFD. UI sports a Zacks Rank #1 (Strong Buy), and CLFD carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

UI’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 54.15%. In the last reported quarter, Ubiquiti delivered an earnings surprise of 39.52%. Its shares have surged 44.6% in the past six months.

Clearfield’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 92.47%. In the last reported quarter, CLFD delivered an earnings surprise of 44.44%. Its shares have declined 7.4% in the past year.

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This article originally published on Zacks Investment Research (zacks.com).

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