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Ribbon (RBBN), Bezeq Ally to Set Up Flexgrid 400G Optical Network

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Ribbon Communications Inc. (RBBN - Free Report) has collaborated with a telecommunications company, Bezeq, to build a new flexgrid 400G optical backbone network. The latest move will strengthen Bezeq’s network infrastructure, enabling the telco to manage surging IP traffic loads and address accretive networking requirements.

Based in Tel Aviv-Yafo, Israel, Bezeq caters to a broad base of customers with avant-garde telecom services, namely fixed-line, mobile telephony, transmission, high-speed Internet and pay TV and domestic and international. Its main subsidiaries are Bezeq On-Line Ltd., Pelephone Communications Ltd. and DBS (Yes). Pelephone Communications is touted as Israel's first cellular phone operator with more than 2.8 million subscribers.

Per the agreement, Bezeq capitalized on Ribbon’s Apollo family of optical transport and switching platforms to revamp its Israel-wide network. Together with flexgrid multi-degree Dense Wave Division Multiplexing, the network modernization move is likely to fulfill the traffic requirements for business and wireless customers as well as pave the path for achieving cost efficiencies with greater flexibility.

Ribbon’s Apollo portfolio consists of switching and OTN products that provide high-density and energy-efficient solutions to various key sectors like transportation providers, utilities, defense and education. Its programmable and open optical networks function in disaggregated, multivendor environments while providing operators with future-proof solutions that are personalized per the business needs.

With smooth capacity growth, it offers high-performance links to 1.2T and 400G ZR+ power-cost optimized pluggable dynamic coherent optics for pay-as-you-grow networks. The Apollo portfolio of switching platforms serves from access to core, covering all network topologies. It simplifies day-to-day operations to improve the overall efficiency of optical networks while addressing the challenging network traffic requirements.

Further, the Apollo suite of products and solutions is specifically designed to aid service providers in deploying cost-effective open optical networks for transport continuity. Driven by such robust characteristics, the partnership will be a win-win for both entities. It will not only prepare Bezeq to meet shifting traffic patterns with scalability and lower cost per bit on the back of 400G wavelengths but also augment Ribbon’s thriving ecosystem of partners.

Moving forward, Ribbon intends to remain focused on delivering real-time and secure data as well as voice network capabilities for the cloud, network and enterprise edge. The Plano, TX-based communications services developer intends to bolster its total addressable market and global reach in service provider networks and critical infrastructure companies. This will help it expand its relationships with fixed and mobile service providers while capitalizing on the booming 5G market for lucrative cash flow.

Ribbon currently has a Zacks Rank #4 (Sell). Its shares have declined 19.9% against the industry’s growth of 87.1% in the past year.

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You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Harmonic delivered a trailing four-quarter earnings surprise of 61.1%, on average. The stock has appreciated 55.2% in the past year. HLIT has a long-term earnings growth expectation of 15%.

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