elefonica Brasil, S.A
) business arm, Vivo, has signed a deal with Ceragon to deploy
the next phase of its 4GLTE network across the country. As per
the contract, Ceragon - a wireless backhaul vendor - will offer
short haul solutions through its FibeAir flagship products to the
Brazilian carrier at nearly $6 million.
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Ceragon is the global wireless backhaul partner of Vivo's parent
) has already assisted Telef to rollout its 4GLTE technology in
six different cities. This will further boost ViVo's 4GLTE
Increased usage of smartphones and tablets has led to network
congestion. In order to improve data speed, most telecom
operators have already adopted or are planning to adopt 4GLTE
technology. ViVo is not an exception to this trend.
Recently, Telefonica Brasil SA declared second-quarter 2013
results, where its net income fell 15.8% year over year. However,
revenues rose by 3.0% year over year on the back of better
performance of its Mobile Business segment, which accounted for
10.1% year over year. Moreover, higher demand for data and value
added services (VAS) has led to 3.4% growth of Average Revenue
Per User (ARPU).
Hence, we believe that ViVo is planning to deploy nationwide
4GLTE network, which will not only drive ARPU but will also
improve its subscriber churn. Moreover, the company aims to
attain 4GLTE coverage across the country before the start of
football World Cup 2014.
Other Stocks to Consider
Other Latin American telecom service providers worth considering
America Movil S.A.B. de C.V.
Hawaiian Telcom Holdco Inc.
). Both carry a Zacks Rank #3 (Hold).