Tag Archives: wireless

Broadcom: Numbers Are Connecting For Investors Now [Seeking Alpha]

Broadcom Corporation (BRCM), with a market cap of $19.96B, is a global semiconductor solution for wired and wireless communications, providing system-on-a-chip, and software solutions. Broadcom continues to benefit from strong smartphone/mobile device sales, whereas BRCM’s chips provide short-range wireless connectivity in Apple (AAPL)’s iPhone and iPad, as well as Samsung’s Galaxy line of mobile devices. Apple and Samsung contribute for more than 30 percent of BRCM’s sales, which was helped by stronger iPhone sales.

Strong Revenue and Profit

BRCM posted Q1 revenue of $2.01B, up 9.7 percent from the year-earlier period and beating analysts’ expectation of $1.91B. BRCM reported net income of $191M (33 cents per share), up from $88M (15 cents per share) in Q1, 2012. Excluding one-time costs, BRCM earned 65 cents per share, beating analysts’ estimate of 56 cents per share. Solid results were due to strong demand for wireless base band and connectivity chips. The management also sees sequential growth ahead in broadband business. BRCM expects Q2 revenue of $2.02B-$2.18B, beating analysts’ average projection of $2.05B.

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China Mobile: Just The Beginning For China’s 4G Wave [Seeking Alpha]

China Mobile Ltd. (CHL), ranking as the largest mobile carrier in the world, reported 2012 results which were in line with expectations. The result has no immediate impact on the company’s Aa3 rating according to Moody’s Investors Service. The rating outlook remains positive, in line with the outlook for China. China Mobile maintained a net cash position of about RMB378B (USD$60.83B) as of December 2012, with unrestricted cash balances of about RMB408B (USD$65.66B) vs. total debt of about RMB30B (USD $4.82B). CHL will be able to cover its high CapEx requirement for coordinating 4 networks, including 2G, TD-SCDMA, TD-LTE and WLAN.

Increasing CapEx, Lower Cash Flow, Same Credit Rating for 2013

For 2013, CHL plans to increase its CapEx to RMB190B (USD$30.6B), 30% of its revenue (up from 23% in 2012), to deal with growing demand for data services and strengthening its TD-LTE network. CHL’s cash flow ratios may fall in 2013 due to high CapEx ratio, but its overall credit profile will remain according to Moody’s.

Wireless Communication Equipment market and Wireless Ecosystem

With over $30B investment into TD-LTE from CHL, numerous companies will benefit. RBC Capital analyst Doug Freedman views this as an incremental positive for those exposed to the wireless communication equipment market and wireless ecosystem. Below is a list of companies which will benefit from growing TD-LTE investment. The list further expands our previous listing of companies involved with TD-LTE in China.

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BlackBerry Z10 Goes On Sale, But BlackBerry Is Not For Sale [Seeking Alpha]

BlackBerry (BBRY)’s BlackBerry Z10 is now on sale in the United Stated. AT&T Inc. (T), the second-largest U.S. wireless carrier, will start selling the highly anticipated BlackBerry Z10 touchscreen smartphone in the United States on March 22, 2013. The U.S. launch of the new devices has been delayed due to a longer carrier-testing phase in the country. AT&T’s pre-sales of the devices had started on Tuesday, March 12. AT&T is selling the devices for $199.99 with a two-year contract. T-Mobile USA also started to sell the BlackBerry Z10 to its business customers in the United States on Monday. Verizon Inc. (VZ), the largest U.S. wireless carrier, has yet to announce when it will start selling the Z10. Earlier, Sprint (S) confirmed that they will not be carrying the BlackBerry Z10 which will make Sprint the only one of the 4 major US carriers not carrying the Z10 instead opting only for the BlackBerry Q10.

Estimate by the Analyst

On March 11, Scotiabank analyst Gus Papageorgiou said, “We believe the Street is pricing in such a weak fiscal 2014 that BB10 does not need to be an outstanding success to surprise.” Papageorgiou has a sector outperform rating on BBRY and expects the company sold about 1 million BlackBerry 10 devices in the quarter ended March 2. The analyst indicated that next quarter will be the true test as BB10 launches in the U.S. and gross margins should improve as more Z10s enter the mix.

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China Mobile: Stabilized 3G And Ready To Dominate 4G-LTE Market In China [Seeking Alpha]

China Mobile (CHL), currently has over 722 million subscribers and is accelerating its deployment of 4G TD-LTE in China. By working with Alcatel-Lucent (ALU), lightRadio Metro Radio will bring high-performance 4G services to Shanghai, Nanjing and Qingdao, three of the fastest growing cities in China. Alcatel-Lucent’s lightRadio portfolio of products will achieve the reduction of costs and power-consumption, as well as the size of LTE network elements, thus helping China Mobile to meet the growing demand for mobile video and data with increased speeds and performance.

Higher Network Capacity Achieved by Small Cells

While it was traditionally too difficult or too costly to deploy a macro cell base station in busy indoor and outdoor locations, lightRadio Metro Radio now provides a cost-effective alternative. This will alleviate the capacity problem for cellular networks as more subscribers use mobile devices to access high-bandwidth services. Small cells will enable China Mobile to provide high-quality, consistent services to customers without the need to build costly and logistically challenging cell towers.

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Nokia: Lumia Receiving Positive Updates And Offering Value At More Competitive Prices [Seeking Alpha]

Nokia Corporation (NOK) continues to receive positive updates for its Lumia phones around the world. In this article, positive developments will be updated for Lumia phones and the speculation for two new lower-cost Lumia phones, Lumia 720 and Lumia 520, will be reviewed.

Positive Updates for Lumia

Lumia 620: Lumia 620 are sold out in UK and is one of the top selling phones at Singtel, Singapore. Black, white, and Lime Green Lumia 620 are in stock at official Nokia Shop in Germany now. Lumia is reported to take surprisingly good “close to real” photos in low-light and daylight. Lumia 620 now holds “top 5 ranks” in the Top selling phone list at Expansys USA. Nokia Lumia 620 is an excellent choice for younger phone fanatics or just those wanting to take their first steps into Windows Phone 8.

Lumia 822: Lumia 822 are in demand and are the most popular phone at Verizon and RadioShack Wireless

Lumia 920: Nokia is upgrading AT&T Lumia 920 with LTE Band 2 and Band 5. Yellow Lumia 920 phones are sold out at Nokia Shop in India. Red Lumia 920 phones are sold out at AT&T. Nokia’s Lumia 920 has stolen the Mall of America from BlackBerry, and was voted Smartphone of the Year by Engadget readers.

India: Nielsen consumer rankings rates Nokia as the most preferred mobile handset brand in India.

Brazil: Brazil welcomes Lumia 920, 820, and 620 launch with long in-store queues, where Lumia 920 phones are sold out in-store and online.

China: Lumia 920T are in stock at China Mobile’s GuangDong stores, where the phone climbs back to the top of best sellers list.

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Sprint’s Network Vision And Clearwire’s TDD-LTE In Action [Seeking Alpha]

Sprint Nextel (S) is the third-largest carrier in the U.S., serving 48 million customers directly. On Dec. 7, 2012, Sprint announced an agreement to acquire a 50% stake in Clearwire Corporation (CLWR) it does not currently own for $2.97 per share. With Clearwire’s huge spectrum assets and SoftBank’s (SFTBF.PK) capital backing, Sprint Nextel could soon be a big force to compete in the new landscape as spectrum resources become scarcer and high-speed 4G LTE becomes a widespread standard. In this article, the recent developments for LTE networks for Sprint Nextel and Clearwire will be updated.

Sprints Network Vision

“Network Vision is Sprint’s plan to consolidate multiple network technologies into one new, seamless network with the goal of increasing efficiency and enhancing network coverage, call quality and data speeds for customers across the United States. In addition to deploying a new 3G network, Sprint will roll out LTE nationwide. Sprint has launched 4G LTE in 49 markets – including Dallas, Houston, Atlanta and Baltimore – and sites are on-air and implementation is under way in hundreds more,” as quoted from Sprint’s official website.

In the last Q4, 2012 management discussion, Sprint’s management indicated that the company is not changing the outlook of 12,000 sites for Q1, 2013. Sprint had zoning completed on nearly 29,000 sites and leasing completed on over 27,000 sites, with a 34% increase over Q3 for both. Sprint had doubled the number of cities under construction to over 450, and the company had now launched 4G LTE in 58 cities with nearly 170 more expected to launch in the months to come. With over 8,000 sites on air, the number is nearly doubled as compared to 3 months ago.

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Verizon Wireless, Vodafone And Verizon Communications: Still Dominating In 4G LTE Market In The United States [Seeking Alpha]

Verizon Wireless, a mobile network operator, is the largest wireless communications services provider in the United States with 98.2 million subscribers as of Q4, 2012. Verizon Wireless is a joint venture of Verizon Communications (VZ), 55%, and Vodafone Group PLC (VOD), 45%. Vodafone Group is the second-largest wireless company in the world behind China Mobile (CHL) and the largest carrier in terms of the number of countries served. The share price of VOD decreased 2.04% and closed at $27.31 on January 29, 2013, since our last article of “Vodafone Group: Cash Flow Still King,” published on October 23, 2012. However, two dividends of $0.51 were distributed on November 20, 2012, and November 23, 2012. In this article, new developments will be updated for Verizon Wireless, Verizon Communications and Vodafone Group.

Major Developments

4G LTE expansion. On January 29, 2013, Verizon Wireless rolled out its 4G LTE coverage to the Pennsylvania counties around Philadelphia; the New Jersey and Delaware shores; and the Lehigh Valley, among other places. Verizon Wireless said its 4G LTE network covers 94 percent of the population in what it calls its Philadelphia Tri-State Region and 89 percent of the population of the country. Verizon Wireless also activated new 4G LTE coverage on three sites in Sullivan County, expanding and filling in coverage on the high-speed data network it launched locally in November 2011. On January 28, 2013, Verizon Wireless reported to expand 4G LTE network in Schoharie County, Greene County, Utica-Rome Area, and Elmira Area. Verizon Wireless continues to be the operator of the nation’s largest 4G LTE network.

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China Mobile’s TD-LTE Technology Expanding Fast, Where To Invest [Seeking Alpha]

China Mobile Ltd. (CHL), ranking as the largest mobile carrier in the world with over 722 million subscribers, had spent two years laying the groundwork for implementing TD-LTE, a 4G mobile phone standard developed by China Mobile for nationwide use. On January 23, 2013, China Mobile had revealed the company’s 2013 TD-LTE terminal development strategy. “We plan to adopt multi-mode, multi-band terminals, with basic terminals supporting 5 modes and 10 spectrum bands, and ideally supporting 5 modes and 12 bands. By 2014, we will require that terminals support Band 41,” explained Wang Hengjiang, director of the products division of China Mobile Terminal. China’s Ministry of Industry and Information Technology, MIIT, had recently allocated Band 41 (2500MHz – 2690MHz) for TD-LTE usage.

Schedule for TD-LTE Products and Handsets

For TD-LTE products, China Mobile will develop its customer-premises equipment and data card offering through a focus on Mi-Fi mobile hotspots. China Mobile will begin “friendly user” trials of LTE Mi-Fi and other related products in the first half of 2013. Mi-Fi trial products will be distributed in Q1 2013, and the service is expected to mature enough in Q2 2013 to begin commercial trial preparations. For TD-LTE mobile handset products, China Mobile will launch “friendly user” LTE handset trials in the second half of 2013. TD-LTE handsets will be distributed in Q3 2013, and a commercial trial will be prepared in Q4 2013.

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