Ericsson (ERIC) penned a framework contract with Ethio Telecom to help the latter in enhancing the performance and capacity of its 2G/3G network in Ethiopia. This assistance will fuel Ethio Telecom’s current network capacity to deliver connectivity to over 60 million Ethiopian subscribers.
As per the agreement, Ericsson will provide Ethio telecom with its 2G/3G mobile communication related products and services such as planning, tuning, designing, optimization and deployment. It will augment the network coverage quality and mobile communication services especially to southern Ethiopia subscribers.
For Ericsson, the agreement will pave the way for expanding its global expertise and technology leadership in the nation. Moreover, with the emergence of 3G network market and high demand for better connectivity in Ethiopia, the deal seems to be a strategic fit for Ericsson. Additionally, this will strengthen the company’s alliance with the Ethiopian telecom services provider.
Of late, Ericsson has been aiming towards extending its footprint in strategic locations across the world, through partnerships with local telecom operators. This week, the company in collaboration with Orange (ORAN) declared the successful testing of 3.4-3.6 GHz (3.5 GHz) frequencies in Bordeaux (read more: Ericsson-Orange LTE-Advanced FDD Trial Successful).
Also, the company along with Entel stated the successful completion of the first live test of APT700 band in Latin America (read more: Ericsson, Entel’s Trial of APT700 Network Band Successful). Such moves promise bright future prospects for Ericsson.
Ericsson currently carries a Zacks Rank #3 (Hold). Some better-ranked companies in the industry include InterDigital, Inc. (IDCC) and ViaSat Inc. (VSAT). Both stocks sport a Zacks Rank #1 (Strong Buy).
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