Ericsson ERIC has renewed its existing agreement with Canada's largest telecommunications provider, Eastlink, for three more years. With the deal, Ericsson will continue to act as Eastlink’s exclusive supplier for radio access network equipments.
The deal entails Ericsson to enhance and upgrade the LTE and HSPA networks of Eastlink via its Evolved Packet Core equipment. Through the assistance of Ericsson, Eastlink will continue to offer a comprehensive set of advanced services to its customers.
We believe the deal will strengthen the long-standing relationship of Ericsson and Eastlink. Additionally, this strategic development bodes well for Ericsson and paves the way for enhancing its presence in the Canadian market. As per its latest Mobility Report, Ericsson anticipates LTE subscriptions to rise to 4.1 billion by the end of 2021.
Of late, the surging trend of network evolution is manifesting itself through efforts on the part of operators to develop stronger customer connectivity and network strength. The need to upgrade to 5G is on the rise and majority of operators are working towards it. Moreover, network upgrade has become a necessity for operators to retain and also attract customers.
Ericsson’s advanced offerings like Radio Access Network, Evolved Packet Core, VoLTE, Wi-Fi calling and superior professional services are in great demand among operators. We believe Ericsson’s global scale and technical skills position it to meet the complex demand of operators.
Per Garnter’s latest Magic Quadrant analysis, Ericsson is presently among the top 5 LTE vendors in the global market along with Alcatel-Lucent ALU, Nokia Corporation NOK and Huawei. Encouragingly, Ericsson’s presence in major high-traffic LTE markets of Japan, the U.S. and South Korea is an indicator of its immense global popularity. Currently, top LTE operators have chosen Ericsson as a reliable partner, delivering over 230 LTE RAN and Evolved Packet Core networks internationally to date.
Ericsson presently carries a Zacks Rank #3 (Hold). InterDigital, Inc. IDCC is a better-ranked stock in the same space having a Zacks Rank #1 (Strong Buy).
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