What Ericsson Is Targeting with 5G Radio Dot


Feb. 19 2018, Updated 3:50 p.m. ET

Improving indoor connectivity

In January, Ericsson (ERIC) announced that it was bringing a new network product to market, the 5G[1.fifth-generation] Radio Dot. Ericsson’s 5G Radio Dot is a small-cell network solution aimed at the indoor connectivity market. The 5G Radio Dot was scheduled to undergo trials in late 2018 and be ready for commercial deployment in 2019.

According to an Ericsson press release, Ericsson head of product area network infrastructure Nishant Batra stated that “enterprises have been asking for first-rate connectivity indoors, as well as higher speeds and capacity to serve advanced use cases that cannot be addressed by traditional indoor systems. Our 5G portfolio, bolstered by small cells, will enable operators to meet these demands.”

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Over 40% of operator budgets to go to 5G networks

Ericsson is hoping that network operators looking to provide enterprises with enhanced indoor mobile broadband will find its 5G Radio Dot attractive. Ericsson is bringing the 5G Radio Dot to market at a time when operators are expected to step up their spending on network upgrades in the shift to 5G. According to SNS Research, investments in 5G networks are expected to account for more than 40% of carriers’ spending by 2025, rising from 5.0% in 2020.

Radio systems to draw $21 billion in spending

Additionally, SNS Research predicts that mobile operators’ spending on 5G radio such as Ericsson’s 5G Radio Dot will surpass $21 billion by the end of 2025. Established radio vendors such as Ericsson, Nokia (NOK), Samsung (SSNLF), and Huawei are seen as well positioned to ride the demand for 5G systems. Ericsson and Nokia are working with US mobile operators such as AT&T (T) and Verizon (VZ) to prepare their networks for 5G deployment.


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