Deals Galore for Ericsson - Analyst Blog

By
A A A

Leading telecom services provider Ericsson ( ERIC ) is set to expand its global network through several new deals in the telecom industry. The company recently announced that it has been selected as one of the principal vendors by Japan-based telecom provider KDDI Corporation ( KDDIY ) for deploying the LTE (Long Term Evolution) and Evolved Packet Core network solutions. The financial terms of the deal remain undisclosed.

The deal comes close on the heels of a deal win from Taiwan-based ChunghwaTelecom Co., Ltd. for providing LTE solutions including Radio Access Network (RAN) and Evolved Packet Core solutions.

The scope of the contract with KDDI Corporation requires Ericsson to deploy the LTE RAN network along with the solutions for Evolved Packet Core network. The company will be using its RBS6000 (Radio Base Station 6000) compact site solution for the service. The RAN network will be designed to support the LTE FDD (Frequency Division Duplexing), which will make radio planning more efficient and user friendly.


KDDI is the second-largest telecommunications operator in Japan having a regional market share of about 20%. This is KDDI's first LTE RAN deal with Ericsson, whereby it aims to capitalize on Ercisson's comprehensive experience in providing global LTE solutions to augment its subscriber base.

Ericsson is the world's largest supplier of LTE technology with approximately 13% market share overall and more than 50% share in global LTE smartphone traffic. To date, Ericsson has delivered more than 180 LTE RAN and Evolved Packet Core networks across the globe, of which more than 110 have gone live.

Currently, Ericsson carries a Zacks Rank #3 (Hold). Some other wireless equipment stocks worth mentioning include Ubiquiti Networks, Inc. ( UBNT ) and Harris Corporation ( HRS ). Ubiquiti carries a Zacks Rank #1 (Strong Buy), while Harris carries a Zacks Rank #2 (Buy).



ERICSSON LM ADR (ERIC): Free Stock Analysis Report

HARRIS CORP (HRS): Free Stock Analysis Report

UBIQUITI NETWRK (UBNT): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: ERIC , HRS , KDDIY , UBNT

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

33,110,376
  • $113.99 ▲ 1.77%
25,034,179
    $17.98 unch
24,486,872
  • $7.41 ▲ 2.07%
20,864,535
  • $7.39 ▼ 2.76%
18,600,501
  • $8.30 ▼ 0.36%
17,530,211
  • $8.14 ▲ 3.17%
17,299,208
  • $93.79 ▲ 2.74%
14,669,760
  • $25.78 ▼ 0.19%
As of 12/26/2014, 04:15 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com