Leading wireless service provider
) announced last Thursday that its Diameter Signaling Controller
(DSC) has been selected by
Telstra Corporation Ltd.
) for expanding and developing its wireless network. Following
the news, Ericsson's shares gained 0.7% till Monday.
Ericsson's DSC is a critical component of a network as it
improves the operating efficiency and reliability by reducing
pressure due to increased signaling control. DSC enables a mobile
network to be more robust and resilient while also reducing the
company's capital and operating expenditures. It also protects
the network from malicious malware and IP attacks.
Telstra expects to revamp and expand its existing network to
meet the growing demand for mobile broadband by the smartphone
and LTE (Long Term Evolution) device users. Deploying DSC
will enable Telstra to balance the load and enhance overload
protection during the peak hours; thus limiting the threats for
network failure. The requirements for signaling control is
expected to rise as an increasing number of operators are
deploying LTE to enhance their networks.
According to Ericsson's Mobility Report on Nov 11, 2013, it is
predicted that the total mobile subscriptions will grow to 9.3
billion by 2019. Smartphone subscriptions are expected to triple
to 5.6 billion whereas smartphone traffic is expected to increase
10 folds in the period of 2013 to 2019. Also, increasing demand
will require as much as 90% of global networks to be covered by
WCDMA/HSPA by 2019 as more than 65% of the world population is
expected to use 4G/LTE services. Therefore, leading LTE mobile
operators are testing the technology to explore this business
Ericsson is the world's largest supplier of LTE technology
with approximately 13% market share. 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.
Ericsson currently has a Zacks Rank #3 (Hold). Other stocks
operating in the same industry and worth considering include
Ubiquiti Networks, Inc.
), both of which carry a Zacks Rank #1 (Strong Buy).
ERICSSON LM ADR (ERIC): Free Stock Analysis
SHORETEL INC (SHOR): Free Stock Analysis
TELSTRA CRP-ADR (TLSYY): Get Free Report
UBIQUITI NETWRK (UBNT): Free Stock Analysis
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