There could be some significant fallout from the deal by AT&T (NYSE:T) to acquire T-Mobile, with analysts citing LM Ericson (Nasdaq:ERIC), Nokia (NYSE:NOK), Siemens (NYSE:SI), Research in Motion (Nasdaq:RIMM), Neutral Tandem (Nasdaq:TDMN) and Nuance (Nasdaq: NUAN) as those likely to lose the most.
Wedbush noted this on Nokia, Research in Motion, Neutral Tandem and Nuance:
“We also see a slight negative impact for Nokia and RIM on the device front as the iPhone will likely take some share.”
For "Neutral Tandem will likely see AT&T route T-Mobile calls to its own tandem switches in markets it has a presence."
“Nuance provides mobile care and has a good speech presence on T-Mobile devices while AT&T is starting to use more of its own speech software and Vlingo for speech application on mobile devices.”
Goldman Sachs (NYSE:GS) said on Sprint: "This deal will likely be a negative for Sprint, as it was the company perceived to "need" a combination with TMobile more than any other. This also remove the other viable option that CLWR (Nasdaq: CLWR) had (T-Mobile)."
Deutsche Bank on LM Ericson:
“We estimate T-Mobile US's Capex is $2.9bn p.a. or 12% of total US Tier 1 carrier Capex. The incumbent suppliers to TMOB are Ericsson & NSN in radio access and Tier 2 and 3 vendors in backhaul (we estimate ~70% is fibre/optical). It is likely that over time AT&T will integrate T-Mobile's cell sites into its own network and cut back spending on radio access and backhaul in areas with significant overlap."
Jefferies on Nokia, Siemens:
"Besides the long-term market share issue we highlighted above, we note that NSN is the major supplier of wireless infrastructure to LightSquared. That 4G network deployment, of course, is still getting off of the ground (many industry participants have concerns about the viability of the network). We note that LightSquared was pursuing a wholesaling strategy to other wireless operators without a 4G network plan. One of those prospective customers was TMobile USA. Now, in the wake of this deal, T-Mobile USA won’t require LightSquared’s services and the viability of Light Squared gets a bit more uncertain."
Goldman Sachs on Convergys Corporation (NYSE:CVG), CenturyLink, Inc. (NYSE:CTL), Frontier Communications (NYSE:FTR), Windstream Corporation (NYSE:WIN):
"We see the transaction as a potential long-term headwind for CVG as it currently generates a material percentage of revenues from AT&T and a small percentage from T-Mobile mostly for customer support and call center work."
RLECs - CenturyLink, Inc. (NYSE: CTL), Frontier Communications (NYSE:FTR), Windstream Corporation (NYSE: WIN):
Goldman Sachs "As part of its $39 bn planned agreement to acquire T-Mobile USA, AT&T is committing to significantly expand its 4G LTE coverage. Previous plans included intentions to cover roughly 80% of the US. Under the proposed merger, AT&T intends to deploy to 95% of the US population, or 46.5 mn incremental pops. The increased coverage is expected to primarily target rural markets."
Showing posts with label Ericsson. Show all posts
Showing posts with label Ericsson. Show all posts
Monday, March 21, 2011
Tuesday, March 15, 2011
Apple (AAPL), Qualcomm (QCOM), Cisco (CSCO) Under Selling Pressure
Shares of Apple (NASDAQ:AAPL), Qualcomm (NASDAQ:QCOM) and Cisco (NASDAQ:CSCO) are all down today as the unfolding crisis in Japan continues to pressure the broader market lower.
"Fearing a lengthy disruption to Japan's manufacturing operations and the potential for extensive fallout from the crippled nuclear reactors, investors were selling stocks early Tuesday," said TheStreet.
The Nasdaq recovered somewhat but was still down nearly 2% by midday.
Wall Street's selling mood didn't exactly spare some of its darlings.
Apple shares fell 3.5% to $341.21 in early trading, which later moderated to $325.23, down more than 2% at noon, even though the company has not been able to supply enough of its new iPad 2s to meet demand.
Wireless chip shop Qualcomm initially fell 5% and rallied a bit to remain 3% down on concerns that mobile phone sales and production will slow, as Japan struggles with widespread devastation.
The selloff also knocked down networking giants like Cisco, which bounced off a new 52-week low and remained down 2.5% at $17.40. Meanwhile, networking gearmakers Alcatel-Lucent (NYSE:ALU) and Ericsson (NASDAQ:ERIC) had been down 5%, were only down 1% and 4% by midday.
Source
"Fearing a lengthy disruption to Japan's manufacturing operations and the potential for extensive fallout from the crippled nuclear reactors, investors were selling stocks early Tuesday," said TheStreet.
The Nasdaq recovered somewhat but was still down nearly 2% by midday.
Wall Street's selling mood didn't exactly spare some of its darlings.
Apple shares fell 3.5% to $341.21 in early trading, which later moderated to $325.23, down more than 2% at noon, even though the company has not been able to supply enough of its new iPad 2s to meet demand.
Wireless chip shop Qualcomm initially fell 5% and rallied a bit to remain 3% down on concerns that mobile phone sales and production will slow, as Japan struggles with widespread devastation.
The selloff also knocked down networking giants like Cisco, which bounced off a new 52-week low and remained down 2.5% at $17.40. Meanwhile, networking gearmakers Alcatel-Lucent (NYSE:ALU) and Ericsson (NASDAQ:ERIC) had been down 5%, were only down 1% and 4% by midday.
Source
Tuesday, March 8, 2011
Qualcomm's (QCOM) Benefit Nokia (NOK), Sony (SNE), Ericsson (ERIC) Overstated Says BMO
The benefits to Qualcomm (QCOM) from the joint venture between Nokia (NYSE:NOK), LG Electronics (LGERF), Sony (NYSE:SNE), Ericsson (NASDAQ:ERIC) are being overstated in the view of BMO Capital’s Tim Long, who cut his rating on the company as a result.
Long said he sees lower royalty payments than expected, and also cut his price target on Qualcomm.
Other pressures on Qualcomm will come from makers of tablets, in Long's estimation, as he sees Apple’s (AAPL) success and that of Samsung (SSNLF) and HTC with their Google (GOOG) Android-based phones affecting the company, as prices are pushed down.
"We see secular weakness from the Japanese OEMs due to strong Smartphone sales from Apple, Samsung and HTC in the domestic market. This has forced the Japanese OEMs to develop and sell Android devices that have lower ASPs than the feature phones they had previously offered. We believe the transition to Windows Phone 7 will hurt Nokia, while the Sony Ericsson new products are later than we expected. Last, we believe new tablet entrants have had a tough time getting product out, said Long.
BMO Capital cut its rating on Qualcomm from "Outperform" to "Market Perform." Qualcomm was trading at $57.30, down $0.28, or 0.49 percent, as of 1:40 PM EST. BMO lowered its price target on the firm from $65 to $56.
Long said he sees lower royalty payments than expected, and also cut his price target on Qualcomm.
Other pressures on Qualcomm will come from makers of tablets, in Long's estimation, as he sees Apple’s (AAPL) success and that of Samsung (SSNLF) and HTC with their Google (GOOG) Android-based phones affecting the company, as prices are pushed down.
"We see secular weakness from the Japanese OEMs due to strong Smartphone sales from Apple, Samsung and HTC in the domestic market. This has forced the Japanese OEMs to develop and sell Android devices that have lower ASPs than the feature phones they had previously offered. We believe the transition to Windows Phone 7 will hurt Nokia, while the Sony Ericsson new products are later than we expected. Last, we believe new tablet entrants have had a tough time getting product out, said Long.
BMO Capital cut its rating on Qualcomm from "Outperform" to "Market Perform." Qualcomm was trading at $57.30, down $0.28, or 0.49 percent, as of 1:40 PM EST. BMO lowered its price target on the firm from $65 to $56.
Tuesday, February 22, 2011
Verizon (VZ), Ericsson (ERIC), Alcatel-Lucent (ALU), Samsung Pushing VoLTE
Verizon (NYSE:VZ), Ericsson (NASDAQ:ERIC), Alcatel-Lucent (NYSE:ALU), Samsung were all seen pushing VoLTE at Mobile World Congress; doesn't look good for VoLGA.
With Verizon Wireless outlining an aggressive plan to implement the Voice over LTE (VoLTE) platform, the last momentum behind an alternative approach, VoLGA, seems to have died. The main carrier backer of VoLGA, T-Mobile, says it will stop pushing the technology, which it had presented as a simpler route to supporting voice on 4G networks than VoLTE, which is based on IMS.
VoLGA was conceived as a middle road between full IMS-based voice and the 3GPP's more basic solution of falling back to circuit switched networks. It ran circuit switched voice over packet networks using a gateway system developed by Kineto Wireless. But in an interview with Light Reading Mobile, (http://www.lightreading.com/document.asp?doc_id=204581&) Olivier Baujard - CTO of TMo's parent firm Deutsche Telekom - said: "We have not created with VoLGA the traction we wanted or hoped. We will implement the IMS-based solution, with CSFB ."
Verizon and its key vendors, Ericsson and Alcatel-Lucent, plus LG and Samsung, were among those demonstrating VoLTE at Mobile World Congress. The GSM Association, which backs the platform, will run an interoperability test event in September, hosted by Vodafone and China Mobile at their respective testing centers in Dusseldorf and Beijing.
Rest of Story...
With Verizon Wireless outlining an aggressive plan to implement the Voice over LTE (VoLTE) platform, the last momentum behind an alternative approach, VoLGA, seems to have died. The main carrier backer of VoLGA, T-Mobile, says it will stop pushing the technology, which it had presented as a simpler route to supporting voice on 4G networks than VoLTE, which is based on IMS.
VoLGA was conceived as a middle road between full IMS-based voice and the 3GPP's more basic solution of falling back to circuit switched networks. It ran circuit switched voice over packet networks using a gateway system developed by Kineto Wireless. But in an interview with Light Reading Mobile, (http://www.lightreading.com/document.asp?doc_id=204581&) Olivier Baujard - CTO of TMo's parent firm Deutsche Telekom - said: "We have not created with VoLGA the traction we wanted or hoped. We will implement the IMS-based solution, with CSFB ."
Verizon and its key vendors, Ericsson and Alcatel-Lucent, plus LG and Samsung, were among those demonstrating VoLTE at Mobile World Congress. The GSM Association, which backs the platform, will run an interoperability test event in September, hosted by Vodafone and China Mobile at their respective testing centers in Dusseldorf and Beijing.
Rest of Story...
Monday, January 24, 2011
Ericsson (NASDAQ:ERIC) Earnings Limited Even with Sales Growth
While Ericsson (NASDAQ:ERIC) sales are expected to surge in 2011, the emerging markets that growth will occur in will have limited earnings potential because of lower margins.
Canaccord says, "We believe Ericsson is well positioned for solid 2011 sales, as our carrier capex survey indicated solid wireless trends in 2011 driven by new 4G network builds in North America and 3G builds in developing markets such as India. However, due to our expectations for the mix in global wireless sales shifting to lower-margin developing markets, we anticipate limited earnings growth in 2011 for Ericsson.
"ERIC reports Q4/10 results on Jan. 25 (pre-market), and we remain comfortable with our Krona 60.3 revenue (in line with consensus) and $0.28 pro forma EPS (above consensus) estimates."
Canaccord Genuity maintains a "Hold" rating on Ericsson (ERIC), which was trading at $11.69, down $0.10, or 0.85 percent, as of 2:56 PM EST. Canaccord has a price target of $11 on Ericsson.
Canaccord says, "We believe Ericsson is well positioned for solid 2011 sales, as our carrier capex survey indicated solid wireless trends in 2011 driven by new 4G network builds in North America and 3G builds in developing markets such as India. However, due to our expectations for the mix in global wireless sales shifting to lower-margin developing markets, we anticipate limited earnings growth in 2011 for Ericsson.
"ERIC reports Q4/10 results on Jan. 25 (pre-market), and we remain comfortable with our Krona 60.3 revenue (in line with consensus) and $0.28 pro forma EPS (above consensus) estimates."
Canaccord Genuity maintains a "Hold" rating on Ericsson (ERIC), which was trading at $11.69, down $0.10, or 0.85 percent, as of 2:56 PM EST. Canaccord has a price target of $11 on Ericsson.
Tuesday, December 14, 2010
Verizon (NYSE:VZ), QUALCOMM (Nasdaq:QCOM), RF Micro (Nasdaq:RFMD), Motorola (NYSE:MOT), Ericsson (Nasdaq:ERIC) Tops Gleacher's Smartphone Picks
Gleacher is wowed by their new Verizon's (NYSE:VZ) new 4G LTE data card, which they updated from the prior VZ EV-DO data card. They reiterated Verizon as their top choice in the smartphone sector, and also like QUALCOMM (Nasdaq:QCOM), RF Micro (Nasdaq:RFMD), Motorola (NYSE:MOT) and Ericsson (Nasdaq:ERIC).
Gleacher said, "We upgraded our VZ EV-DO data card to Verizon's (NYSE: VZ) 4G LTE data card last week and ran field tests in the San Francisco Bay area. Verdict: WOW! Although our study was not scientific, we stand by our call that VZ's LTE network at 700MHz is a game changer and the industry will need to respond.
"We see dramatically better data performance on the VZ network and look for a competitive response from other US players and a move to international. We look forward to LTE smartphones from VZ by mid-2011. This supports our positive smartphone call with top picks QUALCOMM, RF Micro, Motorola and Ericsson.
"VZ's LTE network marks the first large-scale 4G LTE launch, and we believe this is the beginning of an important new phase for the entire industry. We are truly encouraged by early results this soon following the launch (remember the headaches of 3G?). We view the success as a long-term positive for the entire industry, with implications for all of the major participants. We note that data-cards are just the beginning. We believe smart phones and tablets that can harness the increased bandwidth will begin to ramp by mid-2011."
Verizon closed Monday at $34.11, up $0.07, or 0.21 percent.
Gleacher said, "We upgraded our VZ EV-DO data card to Verizon's (NYSE: VZ) 4G LTE data card last week and ran field tests in the San Francisco Bay area. Verdict: WOW! Although our study was not scientific, we stand by our call that VZ's LTE network at 700MHz is a game changer and the industry will need to respond.
"We see dramatically better data performance on the VZ network and look for a competitive response from other US players and a move to international. We look forward to LTE smartphones from VZ by mid-2011. This supports our positive smartphone call with top picks QUALCOMM, RF Micro, Motorola and Ericsson.
"VZ's LTE network marks the first large-scale 4G LTE launch, and we believe this is the beginning of an important new phase for the entire industry. We are truly encouraged by early results this soon following the launch (remember the headaches of 3G?). We view the success as a long-term positive for the entire industry, with implications for all of the major participants. We note that data-cards are just the beginning. We believe smart phones and tablets that can harness the increased bandwidth will begin to ramp by mid-2011."
Verizon closed Monday at $34.11, up $0.07, or 0.21 percent.
Thursday, December 9, 2010
Sprint (NYSE:S) Capex on 'Network Vision' Estimated to Yield Up to $11 Billion
In a move to enhance customer experience, Sprint (NYSE:S) has hired Ericsson, Alcatel-Lucent (NYSE:ALU) and Samsung to re-engineer its wireless network infrastructure.
Dubbed 'Network Vision,' the new network, when completed, will include improvements in data speed, data quality and better in-building coverage.
There will also be a reduction of operating costs and more effective expansion of 4G as a result of the initiative.
All three partners have been designated a specific geographical region to cover.
Sprint has committed about $4 billion to $5 billion over the next several years to implement the changes, which they see as yielding up to $11 billion over a period of seven years.
Dubbed 'Network Vision,' the new network, when completed, will include improvements in data speed, data quality and better in-building coverage.
There will also be a reduction of operating costs and more effective expansion of 4G as a result of the initiative.
All three partners have been designated a specific geographical region to cover.
Sprint has committed about $4 billion to $5 billion over the next several years to implement the changes, which they see as yielding up to $11 billion over a period of seven years.
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