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Ericsson, Swisscom Partner for 4G/LTE

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Switzerland's largest mobile operator Swisscom has recently partnered with Ericsson (ERIC) to provide 4G/LTE (long term evolution) roaming services to countries in Asia and America. Ericsson will be using its new product ‘Diameter Signaling Controller’ (:DSC) to enable Swisscom to be the first European operator to initiate LTE roaming services on a global basis. Financial terms of the deal were not disclosed.

As per the agreement, Ericsson will provide the network capabilities to Swisscom. Ericsson’s ‘Diameter Signaling Controller’ will be based on Ericsson Blade System platform that widens the scalability of the product and eases signaling loads on networks. Additionally, the product will support voice-over LTE services.

Ericsson will initially install the LTE network primarily in three regions including South Korea, Hong Kong and Canada. The deal will enable Swisscom to enjoy the first mover advantage and grab 4G/LTE subscribers.

To date, Ericsson has established about 150 LTE networks worldwide and has made communication easier and more convenient by providing high-speed data for mobile phones and data terminals.

Just a few days back, Ericsson entered into a three-year strategic deal with Mobile TeleSystems (MTS) to develop Information Communication Technology (:ICT) infrastructure for an LTE network in regions within Russia. Additionally, Ericsson received a contract from Entel, a Chile-based telecom company, to provide 4G/LTE network to its operators.

The series of strategic agreements comes at an opportune time for Ericsson, as there is a very high demand for innovative services for 4G/LTE mobile broadband traffic.

Ericsson currently has a Zacks Rank #3 (Hold). Some other players operating in the same industry include Ubiquiti Networks Inc. (UBNT) and ShoreTel Inc. (SHOR), both having a Zacks Rank #1 (Strong Buy).

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