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Ribbon Strengthens Robocalling Mitigation With CNS Tie-Up

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Ribbon Communications Inc. (RBBN - Free Report) recently announced that it has joined forces with consulting services provider — Controlled Network Solutions (“CNS”) — to mitigate the robocalling menace. Notably, CNS will leverage the avant-garde portfolio of Ribbon Call Trust to validate a caller’s identity, thereby ensuring enhanced security. This identity assurance portfolio operates on the mechanism of STIR/SHAKEN framework. Interestingly, Ribbon’s latest partnership underscores its commitment to drive caller ID authentication, especially at a time when the telecom industry is inundated with spoofed nuisance calls. However, shares of Ribbon gained marginally to close at $3.72 on Sep 25 following the news.

With more than two decades of industry experience, CNS mainly specializes in providing computer-related services to various tech companies. The Hackensack, NJ-based company is a primary provider of telecommunications services, which aids enterprises by streamlining their operations across North America. It also provides 24X7 IT support, call recording and managed network services with cost-effective cloud-based technology solutions. Apart from tech services, CNS caters to other industries such as healthcare, manufacturing and government services. As part of this latest collaboration, CNS will be leveraging some of the key solutions from Ribbon’s Call Trust portfolio. These innovative solutions are Secure Telephony Identity (STI) and Policy and Routing (PSX).

Supported by a highly adaptable architecture, Ribbon Call Trust capitalizes on dynamic ML models to detect the original sources of fraud call attempts on a real-time basis. The STI solution capitalizes on behavioral analytics in the Ribbon Protect platform to detect and mitigate malicious attacks while avoiding disruptions in real-time communications. The PSX platform is a standards-compliant, multi-protocol solution that manages caller authentication queries with optimized capital expenses. It is apparently considered as the “gold standard” for routing control and centralized network policy. Furthermore, CNS will also be leveraging Ribbon’s Analytics solution to detect network anomalies and provide detailed insights into customer monetization to gain a clear understanding of traffic patterns.

Ribbon has been an avid patron of promoting an enhanced security landscape in the telecom industry. Last year, the tech company had partnered with Peerless Network to utilize the benefits of the latter’s offering — CallTrue. Impressively, this integration has not only reduced the frequency of unwanted calls but also made it easier for customers to decide what calls they want to allow or block, thereby combating spoofed calls. The partnership comes as a boon to telephone companies, especially when customers are regularly bombarded with thousands of such calls a day.

The stock is currently trading with a forward P/E of 12.6X. Shares of Ribbon have plunged 36.3% compared with the industry’s decline of 7.5% in the past year.

Ribbon currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader industry are A10 Networks, Inc. (ATEN - Free Report) , Qualcomm Incorporated (QCOM - Free Report) and Motorola Solutions, Inc. (MSI - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A10 Networks pulled off a trailing four-quarter positive earnings surprise of 38.8%, on average.

Qualcomm delivered a trailing four-quarter positive earnings surprise of 14.3%, on average.

Motorola delivered a trailing four-quarter positive earnings surprise of 11.1%, on average.

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