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CommScope (COMM) HD Shelf Revamps Liberty Global's Network

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CommScope Holding Company, Inc. (COMM - Free Report) recently joined forces with Liberty Global plc (LBTYA - Free Report) to power the latter’s global gigabit broadband network with High-Density (HD) R-PHY Shelf solution. The deployment of HD Shelf will enable the British-Dutch-American telco to establish a streamlined network infrastructure over fiber, even in remote locations, on the back of higher speeds and enhanced coverage.

Over the years, the Hickory, NC-based company has been developing solutions to support the wireline and wireless network convergence. Industry tailwinds, including 5G and mobile network densification, indoor coverage, and the expansion of optical fiber networks, drive its growth momentum.

CommScope’s HD Shelf has been specifically designed to improve fiber efficiencies and provide significant operational benefits with effective bandwidth management. With increasing bandwidth usage, service providers are scouting for ways to extend their service offerings to deliver 4K video and business services.

Against this backdrop, CommScope’s HD R-PHY Shelf is considered an ideal solution to meet the accretive network demand among subscribers. The solution supports virtualization and will enable Liberty Global to solidify its HFC network infrastructure while realizing the efficiencies related to Distributed Access Architectures (DAA).

The HD R-PHY Shelf consists of eight E6000n HD Remote PHY Devices in a single rack unit and delivers adequate spectrum support for digital broadcast TV and DOCSIS 3.1. Remote PHY is an integral part of ARRIS’ DAA portfolio.

It allows Multi Service Operators to install digital fiber closer to end subscribers, thereby achieving greater service group density. DAA transforms cable networks by decentralizing and virtualizing headend and network functions. CommScope’s HD R-PHY reduces the load on facility space and power systems. Backed by such robust characteristics, the HD R-PHY Shelf will facilitate Liberty Global to transform its broadband network and provide better data and voice services.

CommScope aims to pursue strategies focused on reducing operational costs and optimizing the overall cost structure. The company is well-positioned to capitalize on the long-term industry growth trends, including fiber and mobility, IoT, and low latency. The company is also strengthening its customer relationships and competitive position, thereby, paving the way for a healthy mobility solutions business, as communications service providers continue to build out their networks to increase capacity and coverage.

Zacks Rank & Stocks to Consider

CommScope currently has a Zacks Rank #3 (Hold). Its shares have gained 27.9% against the industry’s decline of 19.7% in the past year.

Zacks Investment ResearchImage Source: Zacks Investment Research

Some better-ranked stocks in the broader industry are Clearfield, Inc. (CLFD - Free Report) and Wireless Telecom Group, Inc. (WTT - Free Report) . While Clearfield currently sports a Zacks Rank #1 (Strong Buy), Wireless Telecom Group 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.

Wireless Telecom Group delivered a trailing four-quarter earnings surprise of 27.5%, on average.