JDS Uniphase Wins LTE Contract - Analyst Blog

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JDS Uniphase Corp. (JDSU) today received a shot in the arm with a new contract for the next-generation (4G) Long Term Evolution (LTE) network. Chunghwa Telecom Co. Ltd. (CHT), the largest integrated telecom operator in Taiwan, has decided to use Signaling Analyzer Real Time of JDS Uniphase for its impending LTE trial runs. Chunghwa decided to implement LTE in 2011 in Taiwan.
 
Emerging LTE network becomes a major growth driver for JDS Uniphase. The first ever super-fast LTE network has already been deployed in Europe. U.S. and Japan are likely to see a series of LTE network deployment in 2011. The company is already supplying equipments to more than 12 network operators and equipment manufacturers. Product portfolio of JDS Uniphase specifically targets emerging technologies of IPTV, wireless backhaul, LTE networks, and 40 Gbps and 100 Gbps optical network systems.
 
Chunghwa is on the verge of conducting live trial runs for Frequency Division Duplex (FDD) version of LTE networks. The aim is to develop a super-fast next-generation mobile broadband network that will act as a natural upgrade for the company's existing WCDMA networks. The company will also use JDS Uniphase's Signaling Analyzer Real Time to monitor and analyze the end-to-end performance of its 3G/HSPA wireless networks to provide industry's best quality of voice and data services.
 
Additionally, we believe Communications and Test Measurement division of JDS Unipahse will immensely benefits from massive growth of wireless backhaul networks. Wireless carriers are gradually increasing their backhaul capacity due to significant growth of mobile Internet traffic and multimedia applications.
 
We maintain our long-term Outperform for JDS Uniphase. However, currently it is a short-term Zacks #3 Rank (Hold) stock. This was mainly due to the cyclical nature of the optical component industry which is characterized by price volatility. JDS Uniphase itself declared that the company will suffer 15% decline in average selling price in 2010.


CHUNGHWA TELECM (CHT
): Free Stock Analysis Report


JDS UNIPHASE CP (JDSU
): Free Stock Analysis Report


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