Ericsson (ERIC) Sets Up Quantum Research Hub in Canada
In a concerted effort to explore quantum-based algorithms in telecom networks and quantum computing, Ericsson ERIC recently announced that it has set up a quantum research hub in Montreal, Canada. The hub is established in collaboration with the University of Ottawa and the University of Sherbrooke. It is likely to fuel the growth of Canada’s economy, as diverse sectors aim to harness quantum capabilities for improved productivity.
Ericsson intends to employ post-doctoral fellows at the universities in the hub to support the quantum research projects of its researchers. The hub is likely to provide the perfect test bed for academic challenges with requisite networking competence and facilities to conduct advanced research.
Leveraging quantum mechanics phenomena, quantum computing has the ability to perform complex calculations at a faster speed. It creates multi-dimensional spaces to represent very large problems and enables users to deploy algorithms to translate complicated problems into understandable forms.
The quantum computing industry is expected to play a critical role in uplifting the economy of Canada as technologies come to fruition and generate additional jobs by innovating hybrid quantum-classical and quantum-inspired protocols. With more than 70 years of experience, Ericsson Canada is well poised to augment the regional quantum ecosystem with its research and development capabilities and existing relationships with leading academic institutions.
Ericsson is the world’s largest supplier of LTE technology with a significant market share and has established a large number of LTE networks worldwide. With the emergence of the smartphone market and subsequent usage of mobile broadband, user demand for coverage speed and quality has recently increased manifold. Further, to maintain superior performance as traffic increases, there is also a continuous need for network tuning and optimization. Ericsson is much in demand among operators to expand network coverage and upgrade networks for higher speed and capacity.
The company is focusing on 5G system development. It believes that the standardization of 5G is the cornerstone for digitizing industries and broadband. The deployment of 5G networks is expected to boost the adoption of IoT devices, with technologies like network slicing gaining more prominence. Ericsson currently has 143 live 5G networks across the globe spanning 62 countries.
The stock has lost 41.6% over the past year compared with the industry’s decline of 18.9%.
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Ericsson currently has a Zacks Rank #4 (Sell).
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