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Juniper (JNPR) Boosts Tata Fiber's Broadband Capabilities

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Juniper Networks, Inc. (JNPR - Free Report) recently inked an agreement with Tata Play Fiber for an undisclosed amount to augment the latter’s network capabilities to cater to the exponential growth in customers and related data demands. The improvement in infrastructure facilities is expected to reduce the complexity of the network while increasing operational flexibility and efficiency with a better economy of scale.

Tata Play Fiber is one of the leading broadband service providers in India, which is reportedly the second largest Internet market globally. It aims to build a PAN India Fiber-to-the-Home (FTTH) broadband infrastructure to cater to the exponential growth in demand for premium, high-speed Internet connectivity across the subcontinent.

This is where Juniper routing solutions come to the fore by effectively helping Tata Play Fiber to offer seamless connectivity and improve the scale and agility of its regional networks. Its 400G connections are easier to manage with fewer overall ports and deliver a lower cost-per-bit by offering the same bandwidth in less physical space. Juniper’s simplified network traffic management eradicates the complexity associated with multiple networks and delivers optimal bandwidth utilization.

With the latest routing platforms, the company aims to significantly improve the network for more agile service delivery and better security features for enhanced visibility and customer data protection. This is expected to provide a shorter time-to-market for new services while ensuring regulatory compliance and data security.

Segment routing simplifies operations and reduces resource requirements in the network by removing network state information from intermediate routers and placing path information into packet headers at the ingress node. This improves operational flexibility and agility for cost-effective user experiences as fewer network elements are involved, avoiding slow response to sudden network changes.

In addition, Tata Play Fiber is likely to leverage Juniper's Broadband Network Gateway subscriber management solution to simplify the delivery of bundled services. This will help to automate service delivery and provide quick home installation and troubleshooting, improving customer service and enabling quicker access to premium, superfast broadband connectivity to millions across India.

Juniper is set to capitalize on the growing demand for data center virtualization, cloud computing and mobile traffic packet/optical convergence. The company is offering new suites of products, such as the T4000 core router, QFX data center platform, ACX and PTX packet/optical solution, among others. With the growing use of smartphones and tablets, mobile data traffic has gone up. This has resulted in higher demand for advanced networking architecture, leading service providers to spend more on routers and switches. Juniper is expected to benefit from the higher spending pattern among carriers to upgrade their networks to support incremental growth in data traffic.

Despite short-term challenges, particularly within the cloud and service provider verticals, Juniper expects healthy progress in most areas of its business, which augurs well for its long-term growth. The company has made significant changes to its go-to-market structure to better align its sales strategies with each of its core customer verticals. Moreover, several new products are in the pipeline, which are expected to further strengthen its competitive position across service provider, cloud and enterprise markets.

The stock has lost 3.2% over the past year compared with the industry’s decline of 11.6%.

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Juniper currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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