SK Telecom Co. Ltd.
), one of the leading telecom carriers in South Korea, has
already enrolled more than 150,000 subscribers for its newly
launched LTE - Advanced network plan.
A couple of weeks back, SK Telecom introduced the new service
with a conversion rate nearly 10,714 customers adopting the new
service per day. The company has already covered 44 important
cities (inclusive of Seoul) in South Korea.
Higher adoption of smartphones and tablets has induced most
people to watch online HD videos. Such increased usage of smart
devices has resulted in network congestion. In order to counter
the problem, most telecom operators are continuously upgrading
their networks from 3G to 4GLTE and now LTE-A, which offers
lightning speed and better frequency usage.
The newly launched LTE - Advanced network plan offers downlink
speed of up to 150 Mbps. To popularize its new service, SK
Telecom has also introduced Samsung's Galaxy S4 LTE-A, the
world's first LTE - Advanced smartphone allowing better usage of
bandwidth and supporting faster network speed. Moreover, the new
device powered with
) processor can download multiple LTE radio channels
simultaneously, unlike other existing 4GLTE handsets that can
Meanwhile, rival network operators, KT and LGU+, are also set to
launch the LTE - Advanced network service. LGU+ will initially
begin the new service in Seoul by the end of July and gradually
cover other major cities by the year-end.
However, we remain apprehensive about the success of the new
service plan as these carriers lack 4GLTE-Advanced smartphones.
After Samsung, LG Electronics and local manufacturer - Pantech -
will launch new handsets compatible with LTE - Advanced network.
However, the technology is new and will require time to gain
Currently, SK Telecom carries a Zacks Rank #3 (Hold).
Other Stocks to Consider
Related stocks belonging to the same industry are
China Unicom Limited
, Inc. (
). Both, China Unicom and NTT DOCOMO carry a Zacks Rank #1
CHINA UNICOM (CHU): Free Stock Analysis
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SK TELECOM CO (SKM): Free Stock Analysis
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