Korean wireless service operator,
SK Telecom Co. Ltd.
) announced its plans to ramp up LTE deployments last Thursday.
The company is targeting speed of up to 300 Mbps across its
network, representing an Advanced LTE network infrastructure.
Although no timeline has been provided for this growth goal, the
company said that it intends to provide up to 225 Mbps speed by
2014. 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
The news failed to stir positivity into the market and the
share price of the company did not show significant movement.
The company currently provides LTE speed of up to 150 Mbps
using 10 MHz of 1800-MHz spectrum and 10 MHz of 800-MHz spectrum.
SK Telecom hadapproximately 84 cities under its LTE coverage as
SK Telecom unveiled the world's first LTE-Advanced (LTE-A)
network that renders speed of up to 150 Mbps that is twice as
fast as LTE and 10 times swifter than the 3G network. It expects
to use additional 10 MHz of its 1800-MHz spectrum to bring speed
of up to 225 Mbps by 2014.
Management has already commercialized the newly launched
network across the Seoul region and the central cities of
Gyeonggi-do and Chungcheong-do. SK Telecom hadapproximately 84
cities under its LTE coverage by July end.
Along with network expansion, the company is also offering an
LTE-A friendly handset - Samsung Galaxy S4 LTE-A - and aims to
introduce seven more smartphones during the later half of 2013.
In an attempt to win customers, the company has kept the price
range of LTE-A connection the same as LTE, thus enabling users to
work on a faster network at a lower price. We believe that this
advanced network will enhance the popularity of high quality
broadcasting and video content as well as boost the customer
service level.Moreover,the company has collaborated with
Alcatel-Lucent to offer services like LTE-Advanced, LTE, WiBro
(WiMAX), and Wi-Fi mobile data through its cell sites with the
help of Alcatel-Lucent IP-based mobile backhaul network
deployment. This deal will also help SKTelecomto improve its
mobile IPTV service capabilities and enhance customer
satisfaction through new mobile services.
SK Telecom currently has a Zacks Rank #2 (Buy).
Other stocks in this sector carrying a Zacks Rank #2 (Buy)
Ceragon Networks Ltd.
Unicom (Hong Kong) Limited
CHINA UNICOM (CHU): Free Stock Analysis
CERAGON NETWRKS (CRNT): Free Stock Analysis
KT CORP (KT): Free Stock Analysis Report
SK TELECOM CO (SKM): Free Stock Analysis
To read this article on Zacks.com click here.