LM Ericsson Telephone Company ( ERIC ) recently won a
contract from Chile-based telecom company Entel for providing 4G or
LTE network to its operators. In addition, the contract will also
expand Ericsson's partnership for Entel's 2G and 3G networks. The
agreement is for a span of 3 years.
The new contract from Entel is the result of increased data
traffic growth and increasing demand for mobile broadband coverage
in Chile. The new contract also includes multi-standard radio
access network, evolved Packet Core with Evolved Packet Gateway on
the SSR 8000 family of Smart Services Routers, operation and
support system and backhaul transport design.
The contract further strengthens Ericsson's position as the
technology leader in the Latin American market. Ericsson is the
world leader in LTE and currently has more than 130 commercial LTE
contracts. Network expansions in emerging markets (including Latin
America, Eastern Europe, Africa, and Asia) are expected to drive
the company's overall revenue over the coming years.
Following the deployment of all the contracts won by Ericsson in
recent times, the company is expected to have more than half of the
share of the Latin American LTE market in terms of volume.
Recently, in Feb 2013, Ericsson and Reliance Communications
signed a $1 billion managed services contract to operate and manage
the Wireline and wireless networks in the Northern and Western
States of India. In addition, Ericsson announced that it has signed
a frame agreement with Tele2 to expand and upgrade the latter's
mobile backhaul network across Europe. This agreement has been
effective since Dec 2012.
Ericsson currently has a Zacks Rank #2 (Buy). Some other players
operating in the same industry such as Juniper
Networks ( JNPR ),
Interdigital Inc. ( IDCC ) and
Qualcomm Inc. ( QCOM ) carry a Zacks
Rank #2 (Buy).ERICSSON LM ADR (ERIC): Free Stock Analysis
ReportINTERDIGITL INC (IDCC): Free Stock Analysis
ReportJUNIPER NETWRKS (JNPR): Free Stock Analysis
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