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Ericsson Puts Indonesia Next in Line for 4G Deployment

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Riding high on its LTE deployment spree, EricssonERIC has finally landed on Indonesian soil after India and China. This top telecom equipment maker inked a three-year deal with XL Axiata, an Indonesia-based mobile telecommunications services operator. Encouragingly, following this news, shares of Ericsson rose about 1.5% during the regular trading session on Sep 29, 2015.

Per the alliance, Ericsson will act as turnkey partner for designing and deployment of 4G/LTE network along with the advancement of existing 2G and 3G networks in Jakarta and Central Java. With this, Indonesians can experience enhanced Smartphone and network performance along with speedy browsing and download speed.

Indonesia is one of the thriving mobile markets in the world with over more than 4 million new mobile subscriptions in the first-quarter 2015, as per the Ericsson Mobility report. As per this report, the company ranked 4 th among the top five countries having highest net additions, with India and China topping the chart. Hence, this justifies Ericsson's decision to ink the deal. Alongside, the latest collaboration will boost Ericsson-XL Axiata's long standing relationship besides leveraging the concept of the 'Networked Society' in Indonesia.

As a matter of fact, with the emergence of the Smartphone market and subsequent usage of mobile broadband, the user demand for coverage speed and quality has increased in recent times. According to a recent Ericsson Mobility Report, nearly 70% of the world's population is expected to use Smartphones and 90% of the global population will have mobile broadband networks by 2020. Thus, mobile subscriptions are anticipated to more than double and reach 6.1 billion by that year.

Interestingly, Ericsson currently boasts a strong presence in high-traffic LTE markets like the U.S., Japan, South Korea, Singapore, Australia and Canada. At present, Ericsson serves around 40% of the global LTE Smartphone traffic. Furthermore, the company is expecting LTE subscriptions to total 3.7 billion by 2020.

Ericsson currently boasts a Zacks Rank #1 (Strong Buy). Other better-ranked stocks in the same space are Aviat Networks, Inc. AVNW , Motorola Solutions, Inc. MSI and ZTE Corp. ZTCOY , all carrying a Zacks Rank #2 (Buy).

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ERICSSON LM ADR (ERIC): Free Stock Analysis Report

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ZTE CORP U-ADR (ZTCOY): 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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