Orange to Top Spanish LTE Launch - Analyst Blog
15 Maio 2013 - 2:55PM
Zacks
Orange, a subsidiary of France Telecom (FTE)
plans to become the first commercial LTE (Long Term Evolution)
service provider in Spain, outpacing smaller rival Yoigo in the
process. Earlier Orange had announced that it would launch its LTE
services in the third quarter of 2013.
The French Telecom giant plans to launch its 4G services in
Spain on Jul 8, 2013, 10 days before rival Yoigo’s planned LTE
launch. Orange, ranked Spain’s third biggest telecom operator will
launch its 4G service in six of the country’s largest cities, which
will put it in an advantageous position as opposed to Yoigo, who
initially plans to launch only in Madrid.
The company plans to add another nine cities by the end of 2013,
before extending its reach to all provincial capitals of the
country by 2015.
Nevertheless, Orange has not yet announced the pricing of its 4G
services whereas Yoigo has declared that it will upgrade its 3G
customers to 4G free of cost. The French carrier has specified that
it will invest around $500 million to modernise the transmission
network and another $900 million to acquire spectrum to deploy LTE
services.
Orange Spain will initially use the 1800 MHz and 2.6 GHz
frequency bands to roll out the LTE services and at a later point
will use the 800 MHz frequency to provide 4G services.
Additionally, the company will use its current 15,000 base stations
for the commercial deployment of the superfast technology and will
add a new LTE enabled device to support the service.
Recently, France Telecom declared weak financial results for the
first quarter of 2013, where the company reported a 4.1% decline in
its top line. However, the company’s Spanish unit reported a
marginal growth in revenues driven by improvement in fixed
broadband and mobile revenues.
4G technology usually allows 10 times faster downloads of games,
HD movies and songs than current mobile technology and is already
being launched in some European countries. We believe
launching LTE services will provide Orange a competitive edge over
its bigger rival Vodafone Group Plc. (VOD) and
Telefonica SA (TEF), who have yet to confirm their
plans to launch 4G services in the Spanish market.
Currently FTE carries a Zacks Rank #4 (Sell). Among other
companies in the same industry, Telefonica Brazil
S.A. (VIV), with a Zacks Rank #2 (Buy), is a better option
for investors.
FRANCE TELE-ADR (FTE): Free Stock Analysis Report
TELEFONICA S.A. (TEF): Free Stock Analysis Report
TELEF BRASIL SA (VIV): Free Stock Analysis Report
VODAFONE GP PLC (VOD): Free Stock Analysis Report
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