O2, the UK subsidiary of
) has signed up more than 1 million 4G customers and its LTE
network now covers 41% of the country's population. The Spanish
incumbent also draws up plans of network modernization across the
Since the launch of its 4G service on Aug 2013, O2 has
expanded its superfast network in 191 towns and cities and has
achieved the magic figure in 8 months. Slough, Berkshire based O2
also noted that the data used by its 4G customers in the first
six months is much more than the data carried by its network
between 2000 and 2008.
However, Everything Everywhere, a joint venture between
) and Deutsche Telekom, is way ahead of O2 in the 4G race and has
attracted 2 million customers in only 14 months of rolling out
the service. The company is also ahead of O2 in 4G network
deployment covering more than 70% of its country's
O2 also chalked out plans to spend £16 million ($26.8 million)
in 2014 to improve data coverage and extend its 3G network
presence to 200 unserved locations. The company plans to upgrade
one fourth of its 2G and 3G towers to deliver better voice and
data connectivity during peak hours and in high density areas.
U.K.'s second largest telecom operator continues to invest
£1.5 million ($2.5 million) daily on its network to provide
flawless connectivity. The carrier announced that upgrading its
older 2G infrastructure will support its growing presence in the
However, despite the investment we believe the company will
have to catch up with Everything Everywhere in the 4G race,
customer growth of which is only second best to that of the South
Korean operators. Further, the two rounds of tariff reduction by
French-German partnership has led to an accelerated uptake of its
Telefonica currently carries a Zacks Rank #5 (Strong Sell).
Other stocks worth considering within this sector are
SK Telecom Co Ltd.
Shenandoah Telecommunications Co.
), both of which carry a Zacks Rank #1 (Strong Buy).
ORANGE-ADR (ORAN): Free Stock Analysis Report
SHENANDOAH TELE (SHEN): Free Stock Analysis
SK TELECOM CO (SKM): Free Stock Analysis
TELEFONICA S.A. (TEF): Free Stock Analysis
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