Korean telecommunication company, SK Telecom (SKM) is developing its LTE-Advanced services in collaboration with Alcatel-Lucent (ALU). The company will offer services like LTE-Advanced, LTE, WiBro (WiMAX), and Wi-Fi mobile data through its cell sites with the help of Alcatel-Lucent IP-based mobile backhaul network deployment. This deal will also help SKTelecomto improve mobile IPTV service capabilities and enhance customer satisfaction by providing new mobile services.
SK Telecom continues to maintain its leadership position in the Korean wireless market. We believe that strong smartphone offerings, 3G network, 4G LTE network expansion and cloud computing business will fuel the company’s future growth.
The demand for smartphones and high-speed data services is growing rapidly, leading to greater requirement for wireless data services. Additionally, SK Telecom’s Apple Inc. (AAPL) iPhones and iPad offerings are gaining traction in the Korean market and driving revenues.
SK Telecom unveiled the world’s first LTE-Advanced (LTE-A) network that renders speed of up to 150 Mbps that is twice as fast as LTE and 10 times swifter than the 3G network. Management has already commercialized the newly launched network across the Seoul region and the central cities of Gyeonggi-do and Chungcheong-do, with plans to broaden the coverage to 84 cities across the nation in the coming months.
Along with network expansion, the company is also offering the LTE-A friendly handset – Samsung Galaxy S4 LTE-A, the world’s first LTE-Advanced phone allowing better usage of bandwidth and supporting faster network speed. Moreover, the new device is powered with Qualcomm Inc.’s (QCOM) processor and can download multiple LTE radio channels simultaneously, unlike other existing 4G LTE handsets. The company also aims to introduce seven more smartphones in the later half of 2013.
We believe that this advanced network coupled with latest devices will enhance the popularity of high quality broadcasting and video content as well as boost the customer service level.
SK Telecom currently has a Zacks Rank #1 (Strong Buy).
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