Ericsson and NVIDIA have partnered to develop technologies that will enable communications service providers to build virtualized 5G radio access networks (RAN). This collaboration is intended to accelerate the rollout of new AI- and IoT-driven services by making virtualized RAN solutions practical, efficient, and ready for commercial deployment.
As demand for virtualization increases, service providers are exploring alternative RAN architectures to give users better experiences while improving operational efficiency. The industry faces a significant challenge: virtualizing an entire RAN in a way that matches traditional RAN networks on cost, footprint, and energy consumption. Achieving that balance is essential to deliver flexible radio networks that can bring new services—such as augmented reality (AR), virtual reality (VR), and cloud gaming—to market faster.
In September, Ericsson, working with Qualcomm, reached an important 5G development milestone in its lab. The trial used commercial Ericsson Radio System base stations, Ericsson standalone New Radio (NR) software, and Ericsson’s 5G Cloud Core solution together with a smartphone-form-factor test device powered by Qualcomm’s Snapdragon X55 5G Modem-RF System. The tests adhered to the international 3GPP 5G NR specifications and demonstrated practical integration across radio, core, and device components.
Ericsson has also seen stronger-than-expected financial performance as demand for 5G networks rises. The company exceeded quarterly earnings forecasts and raised its market outlook for 2019, along with sales targets for 2020, driven by faster deployment of high-speed 5G infrastructure. In the third quarter of 2019, adjusted operating income increased to SEK 6.5 billion from SEK 3.8 billion a year earlier, representing an 11.4% margin and outperforming the SEK 5.2 billion consensus forecast in a Refinitiv analysts’ poll. Ericsson expects near-term 5G rollouts in China—where it has focused investment to capture market share—though initial margins there could be challenging. The company updated its 2022 margin target to a 12–14% range.
Interested in hearing industry leaders discuss topics like these and share real-world use cases? Industry events such as the 5G Expo, IoT Tech Expo, Blockchain Expo, AI & Big Data Expo, and Cyber Security & Cloud Expo bring together experts to explore trends, deployments, and the practical implications of virtualization, AI, and connected devices. These co-located conferences take place in major technology hubs including Silicon Valley, London, and Amsterdam, and provide opportunities to learn from operators, vendors, and developers driving the transition to virtualized 5G networks.