SK Telecom Advance LTE Gets a Boost - Analyst Blog
February 18 2014 - 4:20PM
Zacks
Korean wireless service operator,
SK Telecom Co. Ltd. (SKM) has received the
permission to use additional frequencies that puts it closer to
realizing Long Term Evolution-Advanced or LTE-A tri-band carrier
aggregation (CA) technology in its LTE-A network. The company is
targeting speed of up to 300 Mbps across its network, representing
an Advanced LTE network infrastructure.
The carrier wants to mix 10 MHz of
800-MHz spectrum along with 20MHz of 1,800-MHz spectrum and 10 MHz
of 2.1 GHz spectrum. This would allow the company to realize its
target of 300 Mbps speed. Notably, SK Telecom secured 30 MHz
bandwidth in the 2.1 GHZ band through a frequency option in 2010.
The company has already built a
LTE-A network using 10 MHz of 1800-MHz spectrum and 10 MHz of
800-MHz spectrum. In Nov 2013, it got the permission to combine
both sets of spectrum (1,800 MHz and 800 MHz) that can offer up to
225 Mbps of speed.
The company is preparing to install
base stations for LTE in the 1,800 MHz band to secure nationwide
coverage and expects to start building the same in 2.1 GHz band by
the second quarter of 2014. The new network will be available as
soon as the supporting handsets are available in the market.
LTE, the most sought after
next-generation super-fast wireless communications technology is
rapidly gaining momentum globally owing to demand for high-speed
wireless data services and mobile video. Unprecedented progress of
smartphones has only fuelled the demand.
As per GMSA Intelligence, currently
there are approximately 176 million LTE connections worldwide and
more than 1 billion LTE connections are expected globally by
2017.
SK Telecom is not a laggard in this
regard having unveiled the world’s first LTE-A network that renders
speed of up to 150 Mbps or twice as fast as LTE and 10 times
swifter than the 3G network. At the end of 2013 the company had
13.5 million subscribers.
We believe that the plan for
ramping up LTE speed would help SK Telecom in providing better
services to its customers, making it more popular among wireless
users and improving its market share.
SK Telecom currently carries a
Zacks Rank #1 (Strong Buy). Another stock worth considering is
China Unicom Hong Kong Limited (CHU) which has the
same Zacks Rank as well as BT Group Plc. (BT) and
Telecom Italia S.p.A (TI) which carry a Zacks Rank
#2 (Buy).
BT GRP PLC-ADR (BT): Free Stock Analysis Report
CHINA UNICOM (CHU): Free Stock Analysis Report
SK TELECOM CO (SKM): Free Stock Analysis Report
TELECOM ITA-ADR (TI): Free Stock Analysis Report
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