Recently, leading communications solutions provider
) signed a managed services contract with MBNL for an undisclosed
amount. MBNL includes EE (a merger of Orange and T-Mobile) and
Three UK 4G LTE networks.
Although the financial details are yet to be disclosed, this
5-year contract will include the delivery of central operations
and transmission, network performance and optimization, field
services, and multi-vendor spare parts management services.
Earlier, the 3G networks of T-Mobile and Three UK entered into
a merger agreement to form a 50:50 JV with more than 12,000 sites
consolidated. The two carriers created a third-party
organization, Mobile Broadband Network Ltd (MBNL) in 2007 to run
a joint network with Ericsson. Over the years, Ericsson has been
awarded with multiple contracts from the company. The current
5-year contract is an extension of its managed services
In 2008, Ericsson won a 4-year contract from MBNL to manage
the integration of both the operators' 3G radio access networks
(RAN). Ericsson will now provide MBNL with a fully managed
end-to-end operations service for its 2G and 3G networks.
Ericsson has been receiving a number of contracts from the
major mobile operators globally, the most recent being a
three-year contract inked with T-Mobile for application
development and maintenance of the latter's billing system.
Bharti Airtel had also selected Ericsson's Intelligent
Modernization Network Solution for its prepaid subscribers,
banking on which the global telecommunication operator could
offer flexible data plans to prepaid customers, thereby enhancing
customer experience through flexible bundling and real-time
control of chargeable services.
Ericsson had received another contract from India's Reliance
Communications worth $1 billion for managed services to operate
and manage the wireline and wireless networks in the Northern and
Western States of India. Apart from these
Ericsson was awarded a contract from Entel, a Chile-based telecom
company, to provide 4G/LTE network to its operators.
With all these contracts on board, Ericsson is fully aligned
to achieve its long-term objective of expanding its base and
operations in the emerging markets. Given the favorable scenario,
we expect Ericsson stock to experience a revision in the coming
Ericsson currently has a Zacks Rank #3 (Hold). Other players
operating in the same industry such as
Ubiquiti Networks Inc
) carry a Zacks Rank #1 (Strong Buy), while
) carries a Zacks Rank #2 (Buy).
ERICSSON LM ADR (ERIC): Free Stock Analysis
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