Ericsson, Entel???s Trial of APT700 Network Band Successful - Analyst Blog

Ericsson (ERIC) joined forces with Chile-based telecom operator, Empresa Nacional de Telecomunicaciones S.A. (“ENTEL”) to successfully conduct the first live test of APT700 band in Latin America.

APT700 MHz (Asia-Pacific Telecommunity 700MHz) band is a globally standardized band for Long-Term Evolution (“LTE”) networks, with a capacity to cater to the requirements of over 2.1 billion people.

The two companies conducted the trial on as many as 10 test sites with related equipment. APT700 MHz frequency band was utilized for the test through Entel's 4G LTE network in Rancagua city, loacted near the south of Santiago de Chile.

The two entities are optimistic about the APT700 band's strong indoor as well as outdoor coverage in rural and suburban regions. Post deployment, the companies believe that the APT700 frequency band will greatly enhance the LTE mobile broadband service in the area. The service, including high speed network and improved throughput along with a low latency, will also boost customer experience.

Successful completion of this trial is a key achievement for Ericsson, as it will enable the company to gear up suitably for growing LTE demand and enhance its leadership position in the region. On the other hand, Entel will also benefit from this endeavor, as it was one of three licensees on the APT700 frequency as per the Feb 2014 auction by the Chile government. The company has plans to deploy its 4G LTE network across the nation by 2015.

Ericsson and Entel have also collaborated previously in 2013 to develop 2G, 3G and 4G networks. Per the three-year agreement, Ericsson's 4G LTE network will be provided to Entel's operators, besides expanding the former's partnership for Entel's 2G and 3G networks.  

Ericsson is a key player in the telecommunications industry. The company remains focused on achieving economies of scale and driving growth by gaining strength across all facets of the telecom industry including network infrastructure, devices as well as operators and consumers.  This, in turn, will allow the company to expand to new bands across international markets.

Ericsson currently carries a Zacks Rank #3 (Hold). Some better-ranked companies in the sector include Aruba Networks, Inc. (ARUN), InterDigital, Inc. (IDCC) and ViaSat Inc. (VSAT). All three stocks sport a Zacks Rank #1 (Strong Buy).

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