Ericsson Partners With Telarus and AT&T To Harness $90B SMB Market

Ericsson (ERIC) has inked a strategic partnership with Telarus as it looks to target the $90 billion small and medium business (SMB) market in the U.S. The partnership will allow the communication infrastructure company to market Ericsson Wireless Office through Telarus, a U.S.-based sales agency, to a wider pool of businesses.

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Ericsson Wireless Office is increasingly transforming how people work, particularly amid the pandemic. It has succeeded in delivering office solutions to businesses that quickly needed to adapt their IT strategies to support remote workers.

The Telarus partnership should support Ericsson’s bid to accelerate digital transformation at a time when more people are looking to work off-premises. Together, the companies will target small and medium businesses with 5G-ready office solutions that cover their applications, cloud, and communication needs, regardless of their location or device, and without the need for IT expertise.

“Ericsson Wireless Office is spot on for today’s businesses as remote-work and hybrid-work models become the new norm. It’s truly a one-of-a-kind service that automates desktop provisioning and software license management, giving businesses a flexible work-from-anywhere capability,” said Telarus CEO, Adam Edwards.

Ericsson seeks to further target businesses by having its Cradlepoint division team up with AT&T (T) to deliver an array of 5G enterprise solutions in the U.S. They will offer the first nationwide 5G broadband network for businesses. The service will allow businesses to choose the optimal solution, quality of service, and speed for their needs, without incurring overages. (See Ericsson stock analysis on TipRanks)

Charter Equity Research analyst Edward Snyder has reiterated a Buy rating on Ericsson. According to the analyst, margin improvements and share gains in 1Q affirm long-term prospects.

“Although we have been bearish on the prospects for 5G, Ericsson’s investments into its core business and disciplined expansion into more lucrative markets like enterprise position it favorably even if our assumptions for 5G prove correct,” Snyder wrote in a research note to investors.

Consensus among analysts is a Strong Buy based on 4 unanimous Buy ratings. The average analyst price target of $17 implies 26.30% upside potential to current levels.

ERIC scores an 8 out of 10 on TipRanks’ Smart Score rating system, implying it is likely to outperform the overall market.