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FTE to Utilize L-Band Frequency

Zacks Equity Research

France Telecom’s (FTE) Orange - one of the world’s leading telecommunications carriers - together with Qualcomm Inc.(QCOM) and Ericsson (ERIC) has successfully tested an add-on downlink technology on L-band frequencies.

The test was conducted at Ericsson’s radio base stations and was well supported with devices using Qualcomm’s high powered processors.

Higher usage of smartphones and tablets has resulted in manifold increase in data usage, which in turn, is exerting huge pressure on mobile networks. So by deploying L-band that ranges between 1452-1492 MHz, it will not only reduce network traffic but also provide better service to its subscribers. Moreover, it will not only offer immediate solution to its huge spectrum need but also counter stiff competition from Telecom Italia S.p.A (TI) and Vodafone Group Plc.

Moreover, availability of such lower band frequency will also save cost for the company as it will require less sophisticated and less expensive RF equipment since it uses wider beam width.

Apart from being deployed in terrestrial wireless connections, L-Band is widely used for low earth orbit satellites and military satellites. So the lack of availability of this band frequency has made it quite expensive. So it is to be seen whether France Telecom will be successful in implementing this new band for transmitting data.

Currently, France Telecom carries a Zacks Rank #2 (Buy).

France Telecom conducts its Internet and multimedia services under the Orange brand. It is the largest Internet service provider (ISP) in France as well as in Europe.

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