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4G/3G/WiFi

Ericsson in Front Seat for US LTE Gear

6:50 AM -- The proposed merger between T-Mobile US Inc. and MetroPCS Inc. (NYSE: PCS) helps strengthen Ericsson AB (Nasdaq: ERIC)'s position as a key supplier for 4G Long Term Evolution (LTE) infrastructure in the U.S. (See T-Mobile, MetroPCS to Merge and DT's Best US Exit Bet .)

Consider this:

  • Alcatel-Lucent (NYSE: ALU) and Ericsson are the key LTE network suppliers for both AT&T Inc. (NYSE: T) and Verizon Wireless . Sprint is also working with AlcaLu and Ericsson but adding Samsung Corp. for its LTE deployment. (See Who's Bagged the Biggest LTE Deals? and Sprint's First to Deploy Alcatel-Lucent's lightRadio .)

  • T-Mobile, meanwhile, is using Ericsson and Nokia Networks for its 4G update. MetroPCS, for its part, named Ericsson as its primary supplier back in 2009. (See Ericsson Lands LTE Gig at MetroPCS .) So, AlcaLu is certainly a major supplier of LTE network systems in the U.S., but by my reckoning, Ericsson is currently just in the lead in the LTE equipment stakes.

    Of course, the MetroPCS/T-Mobile merger is supposed to bring "synergies" of US$6 billion or more over time, with some of the savings coming from a single capex budget, so the deal may not prove to be that awesome for Ericsson.

    It could, however, mean the Swedish vendor gets its technology deployed in more U.S. markets. In addition, the 2x20MHz channels that Ericsson may get to deploy for "T-Metro" could also be a nice showcase for European operators as the Old Continent gets licenses for 4G LTE.

    — Dan Jones, Site Editor, Light Reading Mobile

  • joset01 12/5/2012 | 5:19:40 PM
    re: Ericsson in Front Seat for US LTE Gear

    AlcaLu's lightRadio most become a threat to Ericsson as we get to phase 2, small cell rollouts, of LTE, right?

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