QUALCOMM, Inc. (QCOM), SK Telecom Co., Ltd. (ADR) (SKM): Where to Invest to Profit From LTE-Advanced?

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Carrier Aggregation can support up to 150 Mbps speeds by combining two 10 MHz components carriers to form an effective bandwidth of 20 MHz spectrum bands. While SK Telecom Co., Ltd. (ADR) (NYSE:SKM) plans to expand its LTE-A device lineup to a total of seven smartphones in the second half of 2013, it is reportedly in talks with Apple Inc. (NASDAQ:AAPL) to put its LTE Advanced technology in the upcoming iPhone. While there is no reason for Apple Inc. (NASDAQ:AAPL) not to use the LTE-A technology, as stated by a SK Telecom Co., Ltd. (ADR) (NYSE:SKM) executive, Apple Inc. (NASDAQ:AAPL) might use Korea as the pilot test to explore the marketability of LTE-A technology before expanding it into China.

The takeaway

Carrier Aggregation will be implemented to keep up with the increasing demand for data traffic globally. While SK Telecom Co., Ltd. (ADR) (NYSE:SKM) is offering the LTE-A service without customers paying extra, it will raise the bar for other competing operators. Consequently, more operators will have to evolve and upgrade to keep up with LTE-A offerings. Not only for operators, but for smartphone manufacturers as well, the battle for LTE-A will soon heat up. As for now, QUALCOMM, Inc. (NASDAQ:QCOM), as the top processor provider, is a clear winner for the LTE-A trend, whereas SK Telecom Co., Ltd. (ADR) (NYSE:SKM) and Samsung will enjoy the first mover advantage for now.

The article Where to Invest to Profit From LTE-Advanced? originally appeared on Fool.com and is written by Nick Chiu.

Nick Chiu has no position in any stocks mentioned. The Motley Fool owns shares of Qualcomm. Nick is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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