Leading technology and communication services company Ericsson ERIC recently inked a contract with Taiwan’s largest telecom operator, Chunghwa Telecom Co. CHT, to expand the latter’s 4G LTE coverage as well as capacity.
Per the contract, Ericsson will provide its world-class mobile broadband technology, acting as the telecom giant’s sole supplier for the entire core network and RAN. Also, leveraging the competence of its multi-access Evolved Packet Core, Ericsson plans to enhance Chunghwa’s 4G LTE coverage capacity in the busiest locations of Taiwan including Taipei city.
Of late, Chunghwa Telecom has been witnessing an exponential pace of 4G subscriptions and swelling data traffic that has hindered its capacity to deliver more music, videos, and value-added business services to customers. With Ericsson’s assistance, Chunghwa expects to overcome these shortcomings and fuel its revenue growth.
Moreover, huge data demand, coupled with skewed customer behavior in terms of developing more data-centric services, has compelled Chunghwa to collaborate with Ericsson for leveraging its best-of-breed mobile network and robust technical know-how.
This is Ericsson’s second major win in Taiwan in the second quarter of 2015, as the company had previously sealed the deal with one of the country’s top three telecommunication operators – Far EasTone – to enhance its customer service and market position. Also, in the same quarter, Ericsson penned a multi-year deal with Kenya's largest mobile operator – Safaricom – to facilitate upgrade in and extension of the firm’s converged mobile network infrastructure.
Ericsson is the world’s largest supplier of LTE technology, shouldering the burden of 40% of the world's mobile traffic. This secures significant global market share for Ericsson over LTE networks. With rising demand of 4G/ LTE technologies in growing regions like Europe, Asia and the Middle East, Ericsson’s future shines bright.
Ericsson currently carries a Zacks Rank #2 (Buy). Other favorably-ranked wireless equipment stocks are ARC Group Worldwide, Inc. ARCW and Harris Corporation HRS, carrying the same Zacks Rank as Ericsson.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment