Leading South Korean telecom carrier,
SK Telecom Co. Ltd.
) has started offering enhanced Internet speeds of 225 Mbps in
Seoul. Starting next month, the company plans to cover the entire
country with this upgraded network service.
The new LTE Advanced network will make use of the carrier
aggression (CA) technology that combines 20MHz frequency in 1.8GHz
bandwidth and 10MHz spectrum in 800MHz band to offer significantly
higher downlink speeds. Moreover, the advanced network will be well
supported with the improved Samsung Galaxy S5 smartphones, allowing
better usage of bandwidth and faster network speed.
Higher adoption of smartphones and tablets has popularized the
viewing of online HD videos which consume high amounts of
bandwidth. Meanwhile, higher usage of smart devices has resulted in
network congestion. Thus, in order to deliver smooth and speedy
video streaming services, most telecom operators are continuously
upgrading networks from 3G to 4GLTE and now LTE-A.
Notably, SK Telecom was the first carrier to commercialize LTE-A
services with 150 Mbps speed followed by KT and LGU+. At the end of
2013, there were 300 carriers offering LTE service across 107
countries, with South Korea accounting for the highest 4GLTE
penetration rate of 62%, according to reports by Juniper Networks.
Significantly higher demand for high-speed technology on advanced
smartphones has increased the demand for higher LTE-A speeds in the
country. Thus, to capitalize on such opportunities ahead of its
rivals, SK Telecom has made a head start with this latest 225 Mbps
Currently, SK Telecom carries a Zacks Rank #3 (Hold).
Other Stocks to Consider
Related stocks belonging to the same industry are
Chunghwa Telecom Co., Ltd.
TIM Participacoes S.A.
). All three have a Zacks Rank #2 (Buy).
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SK TELECOM CO (SKM): Free Stock Analysis Report
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