LM Ericsson Telephone Company (ERIC) has emerged as the sole supplier of next generation radio base stations in the Nordic and Baltic countries. TeliaSonera has selected it as the sole vendor for next generation coverage in 25 of the largest municipalities in Sweden and the four largest municipalities in Norway, including Oslo.
The Nordic region has had a tradition of being at the forefront of telecommunications development. TeliaSonera now offers its customers a next generation broadband network with wireless access to facilitate interactive, bandwidth-demanding services, such as live web, online gaming, social media interaction and video conferencing.
Ericsson was awarded the contract based on its high precision technology and encouraging offer price.
Supplied by Ericsson, TeliaSonera recently launched the world’s first and largest LTE service in Stockholm. Ericsson has signed commercial Long-Term Evolution contracts with four major operators to date, including Verizon Wireless (VZ) and MetroPCS (PCS) in the US, NTT DoCoMo (DCM) in Japan and TeliaSonera in Sweden.
The Zacks Consensus Estimate on ERIC for fiscal 2010 stands at 76 cents, which is up 38% from the fiscal 2009 figure. There are 17 analyst estimates available for 2010, out of which three have been increased while one has been lowered in the last 30 days. The stock has provided positive earnings surprises in each of the trailing four quarters with the average being 19%. All the above factors along with gradually improving macro environment have helped the stock retain its Zacks #3 Rank. This implies a long-term Neutral recommendation on the stock, which means that it will perform in-line with the broader U.S. Equity market over the next six to twelve months.
Headquartered in Stockholm, Sweden, LM Ericsson Telephone Company is a multinational company engaged in manufacturing and selling wireless infrastructure equipment for the telecom sector. It is a total network solutions provider, serving wireless and wireline operators, enterprises and consumers.
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