Cisco Ericsson Intel To Tevelop Trial 5G Router

U.S. technology company Cisco Systems Inc. CSCO, +0.45% said Monday it will begin collaborating with Swedish network gear vendors Ericsson ERIC, -0.32% and Intel Corp. INTC, -2.41% to develop and trial what is expected to be the industry's first 5G router.

The companies expect the next-generation 5G router to enable business and residential customers to achieve significantly faster networking speeds, lower latency, and the ability to handle exponentially more Internet-connected devices.

Monday's announcement reinforces how industry collaboration will foster innovation in 5G via end-to-end technology development and trials, Cisco said. It also advances the next-generation strategic partnership between Ericsson and Cisco to create the networks of the future, which was announced in November 2015.

Cisco and Ericsson said in November last year that they will combine some sales and consulting efforts and may jointly develop entirely new hardware and services, as both companies are coping with challenges that include a slowdown in the smart phone market, a long-time driver of revenues for the telecom companies that are their biggest customers.