Market Overview

Telecom Stock Roundup: T-Mobile's Freed Spectrum, AT&T's Buyout And More


In the last five trading days, telecom stocks witnessed a sharp rise initially and maintained a flat trajectory thereafter as the Trump administration imposed tariffs on $34 billion worth of imported goods against China. The stocks resumed its ascent later in the week but slipped partially yesterday, as Washington issued a fresh threat to impose additional tariffs against the communist nation.

Amid this cacophony, the U.S. Commerce Department offered a window of opportunity for the initiation of trade-related negotiations with China, as it inked an escrow agreement with ZTE to move it closer to resuming its business activities. This would allow China's second biggest telecommunications equipment manufacturer to start its normal production schedule with access to U.S. suppliers. The seven-year ban imposed on the beleaguered telecom firm in April would be revoked, post its deposit of $400 million in the escrow account.   
Regarding company-specific news, technology collaborations, acquisitions and new investments for network expansion ruled the roost over the last five trading days.

Recap Of The Week's Most Important Stories

1.    Nokia Corporation (NYSE: NOK) inked an agreement with China Mobile Limited to carry out joint research to explore the potential of artificial intelligence and machine learning in 5G networks in China. By collaborating with Nokia, China Mobile seeks to establish a laboratory in Hangzhou, China, to develop a demo system that will evaluate the feasibility of newer applications within 5G ecosystem and leverage AI and machine learning capabilities by working in tandem with third parties. This will help both the companies to successfully address the booming market of the digital economy.

2.    T-Mobile US, Inc. (NASDAQ: TMUS) has augmented its LTE coverage in New York City area by enabling CBS Corporation owned WLNY-TV to repack 600 MHz spectrum per the FCC mandate to clear spectrum for wireless providers. The freed-up spectrum will facilitate T-Mobile to better serve its customers in the region with 5G-enabled products and services. T-Mobile plans to use its 600 MHz spectrum holdings to deploy America's first nationwide 5G network by 2020.

3.    Ericsson (NASDAQ: ERIC) has been selected by Italian telecom firm Wind Tre to modernize the latter's Radio Access Network across the country. Per the deal, Ericsson will implement the Ericsson Radio System product portfolio into the Italian communications service provider's network, starting October 2018. It includes new ERS Radios and ERS Basebands to enhance network quality and user experience for Wind Tre's 31 million customers.

4.    Juniper Networks, Inc. (NYSE: JNPR) announced that ESDS has successfully implemented its high-performing networking solutions to enhance cloud application delivery for greater speed and scalability. ESDS is an India-based managed data center service and auto-scalable cloud solution provider. Juniper will power ESDS with cloud transformation as it creates a secure, scalable and automated multicloud environment for its customers. The company is simplifying the journey for customers toward a secure and automated multicloud.

5.    AT&T Inc. (NYSE: T) announced that it plans to acquire AlienVault to augment its line of cybersecurity products designed for small and medium-sized businesses. AlienVault is a privately held computer security firm based in San Mateo, CA. The buyout will synergize AlienVault's expertise with AT&T's cybersecurity solutions portfolio that includes threat detection and prevention as well as response technologies and services. After the acquisition closes, AT&T business customers will be able to access the unified security management platform that helps make organizations more effective at threat detection and response.

Related Links:

Goldman Sachs Updates Its Telecom Outlook: 'The Pipes Are Not Broken'

Analyst Says Verizon's Stock Should Move Higher On Improved Fundamentals

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.


Related Articles (ERIC + JNPR)

View Comments and Join the Discussion!

Posted-In: contributor contributorsM&A News Contracts