The Zacks Analyst Blog Highlights: Ericsson, Alcatel-Lucent, Nokia Networks, Telefonica and America Movil

For Immediate Release

Chicago, IL – September 25, 2014 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Ericsson AB (ERIC-Free Report), Alcatel-Lucent SA (ALU-Free Report), Nokia Networks (NOK-Free Report), Telefonica SA (TEF-Free Report) and America Movil S.A.B. (AMX-Free Report).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Wednesday’s Analyst Blog:

Big Telecom Vendors to Bid on Mexican Mobile Network

Several leading telecom infrastructure equipment developers, who have global operational experience, are offering bids for the upcoming state-owned mobile network project in Mexico. The project is valued at an astounding $10 billion, and the Mexican government has decided to complete the vendor selection process by mid-2015. The government has undertaken this massive project to instill competition in the highly monopolistic telecom industry.

As per a recent Reuters report, a government spokesperson has been quoted as saying Ericsson AB (ERIC-Free Report) and Alcatel-Lucent SA (ALU-Free Report) have formed a consortium and submitted a bid for this project. We believe that other major telecom vendors like Nokia Networks (NOK-Free Report) may also follow suit.

The mobile network development project will significantly help small carriers such as Grupo Iusacell and Movistar, a subsidiary of Telefonica SA (TEF-Free Report). These small telecom operators can use this state-owned network for their wireless coverage instead of installing their own network, which is highly capital intensive.

The government of Mexico has clearly decided to reform its telecommunications sector. In this regard, the regulatory body Federal Telecommunications Institute (IFT) identified telecom behemoth America Movil S.A.B. (AMX-Free Report) as the dominant player in this market. America Movil’s wireline division, Telmex, currently controls around 80% of the Mexican market, whereas its wireless division, Telcel, holds about a 70% market share. Notably, the IFT wants to restrict the maximum hold of a company in a market to 50%.

As stringent measures, IFT will ban America Movil from charging national roaming fees. Further, the company will have to share its infrastructure with other operators particularly in the local loop (last mileage) segment. Interconnection fees levied by America Movil will also be closely monitored. The company is currently exploring various options to disinvest parts of its fixed and mobile telephony assets to comply with the government regulation.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

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