Ericsson: Capitalizing on China’s Appetite for Mobile Video
1 Gbps speed network
Demand for mobile video is snowballing in China (MCHI), thanks to factors such as the improving availability of smartphones, Internet access, and mobile video content. China’s heavy consumption of mobile video is pressuring the country’s wireless network operators.
With Chinese wireless carriers working to keep up with network demand, business opportunities are opening up for Ericsson (ERIC) in the country’s network infrastructure market. In August, Ericsson helped China Unicom launch a commercial 1 Gbps 4G LTE network using a combination of its different network technologies (QQQ).
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A leading wireless operator
China Unicom’s 1 Gbps wireless network, supported by Ericsson technology, launched in several Chinese cities—including Beijing, Guangdong, and Shandong as well as along Hainan Island’s high-speed train line.
China Unicom, one of the top-three wireless operators in China, finished 2016 with 263.8 million phone subscribers, of which 104.6 million were 4G customers. The carrier’s 4G subscribers more than doubled from 44.2 million at the end of 2015.
The chart above offers a snapshot of the evolution of China Unicom’s customer base over the last few years.
Opening new network markets
In addition to China, Ericsson is helping wireless carriers in other markets, including Australia, launch faster networks to serve their mobile video customers better. These initiatives are expanding opportunities for Ericsson to sell its network equipment.
As the 4G LTE rollout has peaked in many key markets, network equipment vendors like Ericsson, Nokia (NOK), and Cisco Systems (CSCO) have witnessed a slowdown in demand for their gears, which is affecting sales.