Ericsson- Telefonica to Boost Lifestyle in Peruvian Amazon - Analyst Blog

Ericsson (ERIC) collaborated with Telefónica Peru to provide internet connectivity to the Peruvian Amazon region of Latin America, in the coming year. This is the company's first Latin American project involving the implementation of 4G/LTE technology as a fixed wireless internet access in isolated rural regions like the Amazonian jungle.

Ericsson along with Telefónica primarily aims at providing internet access at government organizations like schools and healthcare centers in the Peruvian Amazon. This region, which stretches over 500,000 square km, is known for the abundance of old-growth forests in the world.

The plan was chalked out to contribute towards the betterment of the remote regions and exhibits Ericsson's commitment towards ‘Technology for Good'. The technological advancement at these regions will pave the way for enhanced lifestyle, education system and job opportunities. Notably, as per a research conducted by Ericsson and Arthur D. Little (an analyst firm), with every 10 percentage point rise in broadband, the GDP of a country moves north by 1%.

Along with the social impact, this initiative will pave the way for expanding the global expertise and technology leadership of Ericsson in remote regions. Additionally, it will strengthen the company's alliance with Telefónica.

Of late, Ericsson has been undertaking such social impact projects and exploring new opportunities on the international front. Earlier this month, the company launched its global education initiative – Connect to Learn – in India to provide quality education facility to urban youth and underprivileged students via mobility, broadband and cloud solutions (read more: Ericsson to Edify Deprived Indian Students via ICT Solutions).

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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