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CommScope (COMM), Evoca Partner for Android TV Set-Top Solution

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CommScope Holding Company, Inc. (COMM - Free Report) recently collaborated with a live TV service provider — Evoca — for an avant-garde set-top box solution to deliver first-of-its kind converged live and streaming content to subscribers. Dubbed VIP7802-ATSC, this innovative technology is powered by Android TV with integrated dual multimode ATSC 3.0 and ATSC 1.0 tuners.

Evoca’s next-gen TV service is relied upon by several customers, mainly because of its ability to reach underserved communities that have been plagued by poor service quality. It offers a high-quality alternative to legacy cable and streaming services with no-contract pricing options and easy to use equipment. Boasting a thriving roster of high-definition broadcast programming, Evoca aims to provide premium entertainment experience with aggregated streaming content.

With an unprecedented surge in on-demand content followed by evolving television viewing habits during the pandemic, the VIP7802-ATSC set top is expected to prove itself as a significant advancement for the industry, thereby empowering broadcasters and customers. CommScope’s in-depth technology expertise in developing the set top solution combined with new capabilities and Android TV will enable Evoca to boost its television and entertainment content offering. Meeting ATSC 3.0 standard, the VIP7802-ATSC set-top box will be named “Pilot” by Evoca.

Pilot or the VIP7802 is touted as CommScope’s modern-age IP set-top that is equipped with a powerful Vulkan 3D-capable GPU, dual band Wi-Fi 6 radios and an exceptionally fast quad-core CPU. These technologies support 4K UltraHD resolution and High-Dynamic Range formats to deliver an enriched viewing experience to customers. It also supports software platforms such as RDK 4.0 to fast-track service innovation.

Apart from broadcasting TV services, the product is compatible with over-the-top streaming services like Amazon Prime, Netflix, Inc. (NFLX - Free Report) and Disney+ while providing a seamless access to the Internet. The set-top solution will enable Evoca to deploy its Next Gen TV service across multiple markets in a cost-effective manner. Pilot will be installed across converged broadcast-broadband platform with supreme audio and video clarity. It is slated to deploy in the beginning of first-quarter 2022 and will also be offered to partner broadcasters and others in ATSC 3.0 markets nationwide.

Moving ahead, CommScope aims to pursue strategies that are focused on reducing operational costs and optimizing the overall cost structure. It is well positioned to capitalize on long-term industry growth trends, including fiber and mobility, IoT and low latency. The CommScope NEXT program is expected to improve business processes and unlock shareholder value. It is also enhancing its customer relationships and competitive position, paving the way for healthy mobility solutions business, as communications service providers continue to build out their networks to increase capacity and coverage.

Despite the ongoing global supply chain woes, CommScope expects to capitalize on industry tailwinds such as the demand for 5G, the launch of HELIAX SkyBlox to meet the demand for network upgrades. Growth, cost control and portfolio optimization remain its priorities. In early April 2021, the company announced plan to spin-off the Home Networks business. The restructuring will enable both CommScope and Home Networks to drive innovation and develop new technologies for home and consumer products on the back of a robust manufacturing model.  

The Zacks Rank #4 (Sell) stock has gained 48.2% compared with the industry’s growth of 8.6% in the past year.

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Some better-ranked stocks in the broader industry are Clearfield, Inc. (CLFD - Free Report) and InterDigital, Inc. (IDCC - Free Report) . While Clearfield sports a Zacks Rank #1 (Strong Buy), InterDigital carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Clearfield delivered a trailing four-quarter earnings surprise of 49%, on average.

InterDigital delivered a trailing four-quarter earnings surprise of 536%, on average.

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