Vodafone, Inc.  VOD recently introduced Mission Critical (MCx), Europe’s most advanced mission critical communication service to deliver voice, data and video connectivity for first responders, public safety services and transportation services. The MCx service will be initially launched in Germany with plans to roll out the service throughout Europe in the future. Vodafone already plays a crucial role in serving emergency response in the United Kingdom. Around 80% of the emergency organizations in the United Kingdom relies on Vodafone for accessing transformational digital technologies.

Frontline workers and safety officials often have to work in challenging environments. Effective communication is essential in such situations, the absence of which can lead to a lack of coordination among different teams, delayed response. This can have far-reaching negative consequences in a high-risk, hostile environment. Vodafone’s latest communication solution aims to address these issues.

Will This Product Launch Drive VOD’s Share Performance?

Vodafone’s MCx automatically prioritizes voice, data and video communications used by emergency services during any critical incident. The solution offers end-to-end encryption and facilitates secure and reliable communication in real time for emergency services. The solution can be seamlessly used by compatible smartphones and other devices, eliminating the need for proprietary push-to-talk radios like Terrestrial Trunked Radio (“TETRA”). 

MCx’s support for seamless interoperability improves coordination between first responders and boosts situational awareness. TETRA still plays a critical role and is widely used by several first responder agencies. Vodafone is working closely with these entities to ensure smooth migration to MCx, eliminating the risk of any service disruption.

VOD’s mobile base stations and small cells sites will enable MCx to efficiently support complex and isolated incidents in towns, cities and remote locations. Vodafone is actively working to make MCx compatible with direct-to-device mobile broadband satellite services. This will reduce issues with dead zones and offer comprehensive coverage on land and sea.

Vodafone is aiming to integrate land-based mobile and fixed broadband networks, subsea cable links and direct-to-device mobile broadband satellite services to develop a robust and resilient digital infrastructure in Europe. The introduction of its latest mission-critical connectivity product is a major step to achieve that broader objective.

Recently, Vodafone has joined forces with AST SpaceMobile to create a satellite service business in Europe. This will allow VOD to offer space-based mobile broadband network to its customers across Europe. These initiatives bode well for long-term growth.

VOD Stock’s Price Movement

The stock has lost 7.5% over the past year compared with the industry’s decline of 10%.

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VOD’s Zacks Rank & Stocks to Consider

Vodafone currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader industry have been discussed below.

InterDigital IDCC sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the trailing four quarters, it delivered an earnings surprise of 158.41%. It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions used in digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.

Celestica Inc. CLS sports a Zacks Rank #1 at present. The company provides competitive manufacturing technology and service solutions for printed circuit assembly and system assembly, as well as post-manufacturing support to many of the world's leading original equipment manufacturers.

United States Cellular Corporation USM sports a Zacks Rank of 1 at present. In the last reported quarter, it delivered an earnings surprise of 150%.

U.S. Cellular has taken concrete steps to accelerate subscriber additions and improve churn management. The company aims to offer the best wireless experience to customers by providing superior quality network and national coverage. It is well-positioned to support the investment required for network enhancements, including the deployment of 5G technology.

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United States Cellular Corporation (USM) : Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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