Ericsson Becomes The Key Technology Provider For The 5G Rollout At Telstra

  • Oct 24, 2018 AEDT
  • Team Kalkine
Ericsson Becomes The Key Technology Provider For The 5G Rollout At Telstra

Andy Penn the chief executive officer of Telstra Corporation Limited (ASX: TLS) has locked in Ericsson as the key technology provider for the 5G rollout. It forms an important pillar in the turnaround plans for the telecommunications giant.

Telstra has also made announcement with regards to the roll out of its 50th 5G enabled mobile site in Australia, with a plan to have 200 lit up by the end of FY18. As per the Telstra2022 turnaround strategy revealed by Mr. Penn, the company will be heavily relying on the 5G reviving the telco's earnings in order to make up the fall in the profits of the company by selling the internet access through the National Broadband Network. As of now there are no available consumers with the 5G devices and is not even expected until 2019. Optus being the only telco having significant holdings of 5G spectrum in the metropolitan areas which it acquired as a result of purchase of Vividwireless in 2012. 

Mr. Penn thinks that the ramp up of the roll out of 5G technology so that Telstra gets an advantage. On the other hand, Optus and Vodafone Hutchison Australia disagrees with it as they believe that this will be an opportunity for Telco to build up the number of used cases for the next generation mobiles.

Mr. Penn wants that Telstra should be up and ready before the devices are available with the consumers and believes that the "real world environment" testing is the best way to prove that the new services will reach the high expectations which is already cast on 5G.

The 5G business is at the final stage and the devices are also very advanced. The only thing that need to be done is the testing part with the partners of the company on the networks. Mr. Penn prefers testing in the commercial environment over the lab environment.

The company is also looking forward to getting a range of different use cases, in regional, areas which is densely populated, with connected sensors and connected handsets.

Telstra owns some 3.4GHz spectrum in metro and regional areas. However, not in Sydney and Melbourne that it can use for 5G. As a result of this it is expected that the auction to be held in the month of  November will be a critical one for the telco.

Telstra is hoping to take advantage of not just the consumer data usage but also via mass automation of industries which also includes the mining and agricultural industries. However, there is a reported mobile average revenue per user is moving downwards as a result of the competitors who are offering generous data allowances at a cheaper price in order to capture the market share.

As per Borje Ekholm who the chief executive officer and the president at Ericsson is showing confidence with Telstra and also assures that their extensive collaborative efforts will help Telstra to succeed in 5G. It will have a cutting edge of mobile technology.


The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.


All pictures are copyright to their respective owner(s) does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.


There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK