Leading communications technology and services provider Ericsson (ERIC - Analyst Report) recently reported that it has been selected to be the main supplier of Taiwan based Chunghwa Telecom Co., Ltd. (CHT - Analyst Report) for providing LTE (Long Term Evolution) solutions. The financial terms of the deal remain undisclosed.
As per the contract, Ericsson is entailed to deploy LTE solutions across the country while also providing the roll-out services. The scope of the contract also requires Ericsson to provide Radio Access Network (RAN) and Evolved Packet Core solutions. Ericsson will be solely providing Mobility Management Entity, IMS (IP Multimedia Subsystem) and Evolved Packet Gateway on SSR 8020 (Smart Services Routers 8020) as part of its Evolved Packet Core solutions.
The company will be deploying LTE RAN solutions in the core areas of Taiwan including the Taipei city, which is one of the most populated areas of the country. Taiwan has a significant potential for expanding the LTE market as there is a high adoption rate for new technologies. This is reflected by 127% mobile penetration and about 80% 3G consumers in the country.
Chunghwa Telecom is the largest integrated telecommunications operator in Taiwan. The company offers a full suite of telecom services through fixed-line, mobile, and data networks throughout Taiwan and to offshore islands. This was the first LTE tender by the company for the nationwide roll-out.
Ericsson is the world’s largest supplier of LTE technology with approximately 13% market share overall and more than 50% share in global LTE smartphone traffic. To date, Ericsson has delivered more than 180 LTE RAN and Evolved Packet Core networks worldwide, of which more than 110 have gone live.
Currently, Ericsson carries a Zacks Rank #3 (Hold). Some other wireless equipment stocks worth mentioning include Ubiquiti Networks, Inc. (UBNT - Analyst Report) and Harris Corporation (HRS - Analyst Report). Ubiquiti carries a Zacks Rank #1 (Strong Buy), while Harris carries a Zacks Rank #2 (Buy).