) recently announced that they have entered into a three-year
strategic deal to develop Information Communication Technology
(ICT) infrastructure for an LTE network to be launched at the
2013, 17th St. Petersburg International Economic Forum. The
contract will commence operations from the second quarter of
2013. Financial terms of the deal were not disclosed.
Ericsson will install the LTE network primarily in four
regions including Siberia, Ural, Volga, and Southern Federal
Districts of Russia. With Ericsson's LTE technology covering half
of Russia, the company would become MTS' primary vendor for LTE
The LTE network will boost Russia's connectivity as well as
the economy. The regions that are covered under the LTE
technology are important industrial hubs for key sectors such as
mining, engineering, processing and farming.
As per the agreement, Ericsson will be providing at least
10,000 new-generation products from the RBS 6000 series. In
addition, Ericsson will also deliver core network hardware and
services in these regions and in the Northwestern Federal
District. Ericsson and MTS will also expand their cooperation to
enhance 2G/3G networks in several regions in Russia.
The strategic agreement with MTS comes at an opportune time
for Ericsson, as there is a very high demand for innovative
services and mobile broadband in Russia. Going forward, MTS plans
to set up 4G networks in Russia to offer subscribers with
high-speed data services by the end of 2013.
To date, Ericsson has established about 150 LTE networks
worldwide and has made communication easier and more convenient
by providing high-speed data for mobile phones and data
terminals. Recently, Ericsson received a contract from Entel, a
Chile-based telecom company, to provide 4G/LTE network to its
Ericsson currently has a Zacks Rank #3 (Hold). Some other
players operating in the same industry
Ubiquiti Networks Inc
), both having a Zacks Rank #1 (Strong Buy).
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