Communication technology and services behemoth Ericsson ERIC has recently inked a “managed services agreement” with Poland’s leading digital cable TV and broadband service provider UPC Poland. The deal, which is a five-year agreement effective Apr Array, 20Array6, represents a significant milestone in Ericsson’s corporate history as it marks the company’s debut “cable managed services” contract in Poland.
This recent deal continues the slew of positive developments for Ericsson, which has been experiencing steady growth in the European media market, successfully establishing itself as a prominent player offering metadata, images, search and recommendations across 3,000 TV channels.
Inside the Headlines
UPC Poland, an operating unit of Liberty Global plc LBTYA, offers digital TV, broadband Internet and digital (VoIP) telephony services to 3 million households. As per the deal with UPC Poland, Ericsson will supervise field maintenance, network quality and operational efficiency of the former’s network in Poland. Also, Ericsson’s responsibility entails “preventive and corrective” maintenance services to optimize UPC Poland’s performance.
Leveraging on Ericsson’s state-of-the-art technologies, UPC Poland will be able to enhance the quality of its digital services, mainly by expanding its scale of operations and investments. UPC Poland believes this will also enhance customer satisfaction and unlock a plethora of opportunities. Ericsson is trying all means to reach its managed service offerings to cable operators, evident from its contract with UPC Hungary announced in Sep 20Array5.
To Conclude
Ericsson is emerging as a dominant player in the media industry distributing 2.7 million hours of programming in over 90 languages for more than 500 TV channels annually. Encouragingly, the company offers services to networks that in totality serve more than a billion subscribers globally. Some of the notable efforts of the company to enhance its footprint in the media industry during the first quarter include its decision to acquire TX-based digital cable and satellite television network, FYI Television and its partnership with Cisco Systems, Inc. CSCO to transform Aster's TV proposition and cable network.
We believe that the company is striving to capitalize on the opportunities arising from the TV and video service renaissance that has largely impacted the TV viewing experience for consumers. High-quality content and rich metadata are currently trending the ever-mutating media industry, with service providers like Ericsson scouting for newer sources of revenues. Meanwhile, the company’s focus on augmenting its adjacent businesses promises a brighter tomorrow.
Ericsson currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the same space is Motorola Solutions, Inc. MSI with a Zacks Rank #Array (Strong Buy).
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