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CommScope (COMM) Powers Altice's a4 Advertising Solutions

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CommScope Holding Company, Inc. (COMM - Free Report) has secured a contract for an undisclosed amount from Altice USA, Inc. (ATUS - Free Report) to deploy its video advertising solutions for the latter’s a4 advertising platform. This is likely to enable Altice to better reach its customers through targeted advertisements and improve the quality and effectiveness of marketing messages through existing set-top video system and next-generation IP video platform.

a4 is an advanced advertising tool that provides audience-based, multiscreen advertising solutions for clients. Leveraging the superior reach of a4, advertisers can reportedly extend their content to more than 120 million households, 50 million U.S. household IP addresses and more than 1 billion devices in the United States. This would significantly aid advertisers to screen their advertising messages to target pool of audience, thereby reducing operating costs.

Notably, a4 selected the CommScope Manifest Delivery Controller (MDC) solution to insert addressable ads into its IP video service. With a flexible software platform and built-in automation that speeds time-to-market for new advertising services, the MDC offers a scalable platform for inserting ads, personalizing videos and providing analytics services for IP Video. It also deployed the CommScope SkyVision Back Office and XMS Ad Insertion Servers, which provide reliable advertising operations and efficient workflow management to insert targeted ads across Optimum set-tops. These solutions are likely to help operators and content providers monetize premium video content through targeted advertising and reduce churn rate by offering compelling personalized content.

CommScope is focused on sound technology, highly efficient supply chain and commitment to continuous improvement, which has made it a preferred partner for all telecommunications businesses as the entire industry moves toward 5G. With operators moving toward converged or multi-use network structures, combining voice, video and data communications into a single network, the company is developing solutions designed to support wireline and wireless network convergence, which will be essential for the success of 5G technology.

The company has embarked on an initiative dubbed CommScope NEXT — a multi-faceted program that outpaces the market, optimizes business processes and unlocks shareholder value — for future growth. As part of this strategy, CommScope intends to separate its Home Networks business to create an independent publicly traded entity. Markedly, the tax-free spin-off will enable both CommScope and Home Networks to drive innovation while enabling the latter to focus more on go-to-market strategy and develop its own technologies for home and consumer products on the back of a resilient manufacturing model. The restructuring will also provide enough flexibility to Home Networks business with a dedicated research & development team that will be responsible for stimulating growth in a “Connected Home” future. The split up, which is subject to certain regulatory and market conditions, is anticipated to close by the end of the first quarter of 2022.

The stock has gained 95% in the past year compared with the industry’s growth of 40.4%.

We remain impressed with the inherent growth potential of this Zacks Rank #2 (Buy) stock. Some other top-ranked stocks in the broader industry are Viasat Inc. (VSAT - Free Report) and Nokia Corporation (NOK - Free Report) , both carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Viasat has a long-term earnings growth expectation of 24%. It delivered an earnings surprise of 190.9%, on average, in the trailing four quarters.

Nokia has a long-term earnings growth expectation of 1.5%. It delivered an earnings surprise of 215.2%, on average, in the trailing four quarters.

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