Back to top

Image: Bigstock

Ericsson Gets Multi-Year Deal From TIGO to Boost Network

Read MoreHide Full Article

Ericsson (ERIC - Free Report) recently announced that it has clinched a multi-year contract from Millicom’s commercial brand — TIGO. Per the deal, Ericsson will work on modernizing TIGO’s radio access network deployed across Honduras and Paraguay.

According to the terms of the deal, Ericsson will implement its Ericsson Radio System portfolio into about 1000 TIGO's sites. Notably, the first phase of the implementation will be carried out in Honduras and Paraguay, beginning this year. With the rollout, TIGO will gain full 4x4 MIMO capabilities in these two countries. Also, the rollout supports indoor coverage through the Radio Dot System as well as micro radios for hotspot capacity in Paraguay. As a matter of fact, these implementations will enable TIGO to enhance network quality as well as customer experience.

Ericsson will also be responsible for extending TIGO's existing network apart from modernizing the existing 2G/3G and 4G sites. Notably, these enhancements will enable TIGO to seamlessly migrate to 5G and IoT capabilities.

With the emergence of the smartphone market and subsequent usage of mobile broadband, user demand for coverage speed and quality has increased. Further, to maintain superior performance as traffic increases, there is also a continuous need for network tuning and optimization. Ericsson, being one of the premier telecom services providers, is much in demand among operators to expand network coverage and upgrade networks for higher speed and capacity.

In the past three months, this Zacks Rank #1 (Strong Buy) company’s shares have gained 1.5% against the industry’s decline of 11%.

Moreover, the company is focusing on 5G system development and has undertaken many notable endeavors to position itself for market leadership on 5G. It believes that standardization of 5G is the cornerstone for digitization of industries and broadband. Also, Ericsson expects mainstream 4G offerings to give way to 5G technology in the future. Meanwhile, the impending deployment of 5G networks in 2020 is expected to boost the adoption of IoT devices with technologies like network slicing gaining more prominence.

Other Key Picks

Some other top-ranked stocks in the same space are QUALCOMM Incorporated (QCOM - Free Report) , Ubiquiti Networks, Inc. and ATN International, Inc. (ATNI - Free Report) . All these three companies carry a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

QUALCOMM surpassed estimates in each of the trailing four quarters, the average positive earnings surprise being 18.47%.

Ubiquiti Networks outpaced estimates thrice in the preceding four quarters, the average earnings surprise being 11.30%.

ATN International exceeded estimates thrice in the preceding four quarters, the average earnings surprise being 138.12%.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


QUALCOMM Incorporated (QCOM) - free report >>

Ericsson (ERIC) - free report >>

ATN International, Inc. (ATNI) - free report >>

Published in