China Mobile Ltd
) recently selected
) LTE TDD technology for upgrading its nationwide 2G, 3G and 4G
network covering 15 provinces. Ericsson will be required to
provide radio access network, Evolved Packet Core and expand the
base of installed networks. The financial terms of the contract
were not disclosed.
Prior to this contract, Ericsson did not have any 3G footprint
with China Mobile. However now, this deal will allow Ericsson to
strengthen its position in one of the fastest growing markets in
the world. The deal will provide Ericsson a wide and important
position in the Chinese broadband market, as the 15 provinces
comprises about 63% of China's population and include three of
the most important provinces in terms of GDP.
Through this deal, Ericsson will be the primary supplier for
China Mobile in its core segment, as Ericsson will upgrade its
User Data Management (HLR/HSS), which comprises about 40% of the
market share, and will also provide Evolved Packet Core,
comprising 20% of the market share in China.
China Mobile is one of the leading mobile companies in China
with a total customer base of approximately 759 million (approx
60% of the entire subscriptions in the country), of which it has
about 176 million of 3G customer base (as of Oct 31, 2013).
Further, China is one of the promising markets for mobile data
services and smartphones, which is growing at a rate of over 50%
every year. Therefore, China Mobile is deploying such huge
infrastructure to support the ever-increasing demand for mobile
Internet, video and data in the world's largest smartphone
On Nov 15, China Mobile had selected
) all-IP Evolved Packet Core portfolio to support its 4G LTE
Network, which is supposed to be the world's biggest ultra
Chinahas been one of the important markets for Ericsson since
1892. Currently, Ericsson has one of its largest R&D bases
and supply and manufacturing sites in China. This apart, Ericsson
was a pioneering developer of the TDD mode of the LTE standard
and has made many significant contributions to the advancement of
LTE TDD. Ericsson's LTE TDD and FDD solutions share the same
hardware platform, with commonly applicable software and
features, ensuring that LTE TDD will deliver the same high
performance and reliability.
Ericsson is the world's largest supplier of LTE technology
with approximately 13% market share. To date, Ericsson has
delivered more than 180 LTE RAN and Evolved Packet Core networks
worldwide, of which more than 110 have gone live.
Ericsson currently has a Zacks Rank #3 (Hold). Another stock
worth mentioning is
Ubiquiti Networks, Inc
), which carries a Zacks Rank #1 (Strong Buy).
ALCATEL ADS (ALU): Free Stock Analysis Report
CHINA MOBLE-ADR (CHL): Free Stock Analysis
ERICSSON LM ADR (ERIC): Free Stock Analysis
UBIQUITI NETWRK (UBNT): Free Stock Analysis
To read this article on Zacks.com click here.