Juniper Networks (JNPR) is leveraging its longtime relationship with Ericsson (ERIC) to try to capture a larger portion of the billions of dollars being spent on 5G systems. Spending on 5G is expected to exceed $326 billion by 2025, according to Moor Insights & Strategy.
Juniper has teamed up with Ericsson to offer service providers 5G transport network solutions. Ericsson, which predicts that there will be a billion 5G subscribers globally by 2023, is the leading vendor of telecom equipment and related software and services in North America. It counts Verizon (VZ) among its key North American customers. Verizon is on track to launch 5G services in several US markets later this year.
US operator spending on 5G to touch $100 billion
According to GSMA Intelligence, US mobile operators will spend about $100 billion on 5G between 2018 and 2020. T-Mobile (TMUS) and Sprint (S), the two operators that are seeking to combine, have committed to spending as much as $40 billion to improve their networks, including investing in 5G, if allowed to merge.
Juniper is in fantastic position for 5G
While discussing second-quarter results in July, Juniper CEO Rami Rahim said the company is in a fantastic position to take advantage of spending on 5G, particularly in the security area.
While Juniper’s overall revenue was down 8.0% YoY (year-over-year) to $1.2 billion in the second quarter, security revenue rose 15.7% YoY. But at $79.5 million, security is currently a tiny piece of the business.