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Ericsson-Far EasTone Collaborate for 4G LTE in Taiwan - Analyst Blog

Global communications technology and services giant EricssonERIC recently inked a contract with one of Taiwan's top three telecommunication operators - Far EasTone, for an undisclosed amount. The deal is expected to enhance Far EasTone's customer service and augment its market position.

Inside the Headlines

Per the agreement, Ericsson will aid the Taiwanese operator to develop the country's 4G network that will allow Far EasTone to gain a competitive edge over its peers. The ramped-up network will not only enhance customer satisfaction but will also cater to the specific technological needs of corporate customers. Also, through the alliance, Far EasTone customers will be able to enjoy improved quality HD voice over LTE (VoLTE) and Wi-Fi calling.

Meanwhile, Far EasTone believes that there is a growing need among operators to develop the Internet of Things platform in order to strengthen the existing 4G networks and ultimately upgrade to 5G. In this regard, management believes that Ericsson's cutting-edge technology will act as a catalyst for Far EasTone's LTE network.

Our Take

Of late, the surging trend of network evolution is manifesting itself through efforts on the part of operators to develop stronger customer connectivity and network strength. The need to upgrade to 5G is on the rise and majority of operators are working toward it. Moreover, network upgrade has become a necessity for operators to retain and also attract customers.

Ericsson's advanced offerings like Radio Access Network, Evolved Packet Core, VoLTE, Wi-Fi calling and superior professional services are in great demand among operators. We believe, Ericsson's global scale and technical skills positions it to meet the complex demand of operators.

Ericsson presently dominates most of the high traffic LTE markets across diverse geographies including the U.S., Japan and South Korea. The company transmits as high as 40% of the world's mobile traffic, which has earned it the top position in LTE markets across 100 cities globally.

Ericsson currently holds a Zacks Rank #4 (Sell). Better-ranked wireless equipment stocks in the industry include Juniper Networks, Inc. JNPR , Polycom, Inc. PLCM and Zhone Technologies Inc. ZHNE . All three sport a Zacks Rank #1 (Strong Buy).

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POLYCOM INC (PLCM): Free Stock Analysis Report

JUNIPER NETWRKS (JNPR): Free Stock Analysis Report

ERICSSON LM ADR (ERIC): Free Stock Analysis Report

ZHONE TECH INC (ZHNE): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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