Ericsson's Services For Flow Mobile Networks In Caribbean

Swedish communication technology and services giant Ericsson (ST:ERICAs) (NASDAQ:ERIC) won a contract extension to provide world-class managed services to C&W Communications, which owns the retail brand Flow. C&W Communications was acquired by Liberty Global (NASDAQ:LBTYA) (LiLAC Group) earlier this year.

The contract allows Ericsson to continue managing the FLOW mobile network in Caribbean markets under its new owner, Liberty Global.

The financial details of the transaction were kept under wraps.

The new three-year contract covers field services like corrective and preventive maintenance of the mobile core and radio equipment. It also includes a Network Operations Center to monitor and maintain the mobile network across the 12 covered markets, including Jamaica. The other markets covered under the contract are Anguilla, British Virgin Islands, Antigua, Cayman Islands, Barbados, St Kitts-Nevis, Dominica, St Lucia, St Vincent, Grenada and Turks & Caicos Islands.

Ericsson’s services will improve the quality and reliability of C&W and Liberty Global's services, while delivering higher network availability and reduced outages to users.

The deal serves to strengthen Ericsson’s strong foothold in the region, and enables its customers to leverage innovation, boost operational efficiencies and explore new go-to-market models.

Ericsson is the world’s largest supplier of LTE technology, and about 40% of the world's mobile traffic is carried over Ericsson networks. Furthermore, Ericsson has a solid network of partnerships to facilitate competitive supply and provisioning of broadband access solutions.

However, stiff competition and currency fluctuations have been weighing on this Zacks Rank #4 (Sell) company’s performance lately. Ericsson is also grappling with waning sales in some key end-markets, slowdown in 4G deployment in China and ongoing industry consolidation among customers and major rivals.

Some better-ranked stocks in the broader computer & technology space include ServiceSource International, Inc. (NASDAQ:SREV) , Exa Corporation (NASDAQ:EXA) and Adobe Systems Incorporated (NASDAQ:ADBE) , each sporting a Zacks Rank #1 (Strong Buy).