Another LTE Contract for Ericsson - Analyst Blog

On Apr 9, Ericsson ERIC was selected by Far EasTone, a Taiwan-based telecommunications operator as the primarily supplier of its Long Term Evolution (LTE) radio and core network. Financial details of the deal were not disclosed.

The scope of the contract requires Ericsson to provide hardware, software and support services, rolling out a multi-access radio access networks (RAN) and core network for both 3G and 4G services, along with network optimization support.

With the deployment of Ericsson's LTE network, Far EasTone will offer its customers improved speed and reliability, with the prospect to expand with growing future needs. With the nationwide installation of Ericsson's network, Far EasTone subscribers will be able to access speeds of up to 150 Mbps/50 Mbps (downlink/uplink) with 20 MHz LTE frequency bandwidth for smartphone and mobile broadband use.

Apart from the LTE implementation, the contract also requires Ericsson to put into operation its 4G Cell Broadcast System CBS to aid the Taiwanese government and consumers to benefit from disaster warning services.

Far EasTone is a leading company which provides telecommunications and digital application services. The company constantly introduces new products and services, utilizing access technologies, including 2G, 3G, WiFi and WiMax. Given the rapid growth of smart devices, Far EasTone plans to invest significantly in the improvement of Internet infrastructure, actively enhance the speed and quality of mobile networks, upgrade base stations and expand the channel range.

Ericsson is the world's largest supplier of the LTE technology with approximately 13% market share overall and more than 50% share in the global LTE smartphone traffic. To date, Ericsson has delivered more than 180 LTE RANs and Evolved Packet Core networks across the globe, of which more than 110 have gone live. Prior to this, the company received LTE projects from Nigeria-based telecom provider, Smile Communications, for deploying a LTE radio network, leveraging the multi-standard RBS 6000 family of base stations and the compact and fully integrated AIR (Antenna Integrated Radio) Antennas.

Currently, Ericsson carries a Zacks Rank #3 (Hold). Some other wireless equipment stocks worth mentioning include Juniper Networks Inc. JNPR, Shoretel, Inc. SHOR and Qualcomm Inc. QCOM. Juniper and Shoretel carry a Zacks Rank #1 (Strong Buy), while Qualcomm carries a Zacks Rank #2 (Buy).