Shake-Up In 4G LTE Market Creates Long-term Investment Opportunies: Verizon Communications Inc. (VZ)

Page 1 of 2

Long Term Evolution, or LTE, is a 4G wireless broadband technology developed by the Third Generation Partnership Project, or 3GPP, an industry trade group. 4G LTE technology offers faster data transfer, as compared to existing 3G networks, by using radio waves over the same bandwidth. LTE technology is designed to be scalable and not clash with 3G services while using the same infrastructure for their functions. 4G LTE is expanding fast in 2013, and is expected to be booming in the next few years. 5 companies, including China Mobile (NYSE:CHL), Clearwire (NASDAQ:CLWR), Sprint Nextel (NYSE:S), Nokia (NYSE:NOK), and Alcatel-Lucent (NYSE:ALU) will benefit from fast expansion of 4G LTE in the next few years.

The $78 Billion Question Affecting Dividend Stocks TodayThere are two types of LTE: TD-LTE and FDD-LTE. TD-LTE has been tested in France, Ireland, Poland and is currently aggressively deployed in China. Networks in Germany, Austria, Scandinavia and the Baltic use FDD-LTE. Verizon Wireless, owned by Verizon Communications Inc. (NYSE:VZ) and Vodafone Group Plc (ADR) (NASDAQ:VOD), also uses FDD-LTE in the United States.

TD-LTE

For TD-LTE, the expansions are led by China Mobile Ltd. (ADR) (NYSE:CHL)​ in China and Clearwire in the United States. Clearwire intends to have its first wave of TD-LTE 5,000 cell sites up and running by June, 2013. Clearwire has been working with Sprint Nextel , its majority owner and the largest wholesale customer, to identify sites for Clearwire’s planned TD-LTE network. Clearwire plans to deploy its LTE Advanced-ready TD-LTE network mainly in urban areas, where the traffic is heaviest. Softbank’s $20B take-over deal of Sprint Nextel is progressing despite the delay by Dish Network, the Department Of Justice, and the FCC. As reported on February 9, 2013:

“Federal Communications Commission is moving ahead with its original timetable for reviewing SoftBank’s proposed $20 billion acquisition of Sprint Nextel – dismissing Ergen’s request for a “pause” while Dish pursues a deal for Sprint partner Clearwire.”

Despite Dish Network’s objection, the FCC is moving ahead with its review, putting Sprint and SoftBank on target to pull off the complex deal in June or July 2013. The FCC is expected to finish the review within 180 days. Industry experts also expect that Softbank will be able to alleviate concerns and win DOJ approval. It would be in Sprint’s best interest to complete the deal as soon as possible. Sprint just reported losses of $1.3B in Q4, 2012 on February 7. The company needs to focus on its long-term turnaround efforts, and to expand its network to 4G LTE via a Clearwire buyout with Softbank’s capital backing. On February 6, 2013, Softbank announced plans to sell up to $3.2B in bonds to help fund the acquisition of Sprint.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!