Leading telecom services provider Ericsson (ERIC - Free Report) is set to expand its global network through several new deals in the telecom industry. The company recently announced that it has been selected as one of the principal vendors by Japan-based telecom provider KDDI Corporation for deploying the LTE (Long Term Evolution) and Evolved Packet Core network solutions. The financial terms of the deal remain undisclosed.
The deal comes close on the heels of a deal win from Taiwan-based ChunghwaTelecom Co., Ltd. for providing LTE solutions including Radio Access Network (RAN) and Evolved Packet Core solutions.
The scope of the contract with KDDI Corporation requires Ericsson to deploy the LTE RAN network along with the solutions for Evolved Packet Core network. The company will be using its RBS6000 (Radio Base Station 6000) compact site solution for the service. The RAN network will be designed to support the LTE FDD (Frequency Division Duplexing), which will make radio planning more efficient and user friendly.
KDDI is the second-largest telecommunications operator in Japan having a regional market share of about 20%. This is KDDI’s first LTE RAN deal with Ericsson, whereby it aims to capitalize on Ercisson’s comprehensive experience in providing global LTE solutions to augment its subscriber base.
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 across the globe, 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 - Free Report) and Harris Corporation (HRS - Free Report) . Ubiquiti carries a Zacks Rank #1 (Strong Buy), while Harris carries a Zacks Rank #2 (Buy).