Korean wireless service operator,
SK Telecom Co. Ltd.
) has received the permission to use additional frequencies that
puts it closer to realizing Long Term Evolution-Advanced or LTE-A
tri-band carrier aggregation (CA) technology in its LTE-A
network. The company is targeting speed of up to 300 Mbps across
its network, representing an Advanced LTE network
The carrier wants to mix 10 MHz of 800-MHz spectrum along with
20MHz of 1,800-MHz spectrum and 10 MHz of 2.1 GHz spectrum. This
would allow the company to realize its target of 300 Mbps speed.
Notably, SK Telecom secured 30 MHz bandwidth in the 2.1 GHZ band
through a frequency option in 2010.
The company has already built a LTE-A network using 10 MHz of
1800-MHz spectrum and 10 MHz of 800-MHz spectrum. In Nov 2013, it
got the permission to combine both sets of spectrum (1,800 MHz
and 800 MHz) that can offer up to 225 Mbps of speed.
The company is preparing to install base stations for LTE in
the 1,800 MHz band to secure nationwide coverage and expects to
start building the same in 2.1 GHz band by the second quarter of
2014. The new network will be available as soon as the supporting
handsets are available in the market.
LTE, the most sought after next-generation super-fast wireless
communications technology is rapidly gaining momentum globally
owing to demand for high-speed wireless data services and mobile
video. Unprecedented progress of smartphones has only fuelled the
As per GMSA Intelligence, currently there are approximately
176 million LTE connections worldwide and more than 1 billion LTE
connections are expected globally by 2017.
SK Telecom is not a laggard in this regard having unveiled the
world's first LTE-A network that renders speed of up to 150 Mbps
or twice as fast as LTE and 10 times swifter than the 3G network.
At the end of 2013 the company had 13.5 million subscribers.
We believe that the plan for ramping up LTE speed would help
SK Telecom in providing better services to its customers, making
it more popular among wireless users and improving its market
SK Telecom currently carries a Zacks Rank #1 (Strong Buy).
Another stock worth considering is
China Unicom Hong Kong Limited
) which has the same Zacks Rank as well as
BT Group Plc.
Telecom Italia S.p.A
) which carry a Zacks Rank #2 (Buy).
BT GRP PLC-ADR (BT): Free Stock Analysis
CHINA UNICOM (CHU): Free Stock Analysis
SK TELECOM CO (SKM): Free Stock Analysis
TELECOM ITA-ADR (TI): Free Stock Analysis
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