We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ericsson, Cisco to Upgrade C&W Communications' IP Network
Read MoreHide Full Article
Leading networking equipment providers, Telefonaktiebolaget LM Ericsson (ERIC - Free Report) and Cisco Systems, Inc. (CSCO - Free Report) , recently entered into an agreement with British multinational telecommunications company, C&W Communications, to improve its IP networks in the Caribbean region.
C&W Communications is executing its investment plan to redefine customer experience in the Caribbean by upgrading its network infrastructure. The company believes that there is a pressing need for intelligent IP networking solutions in Jamaica, Barbados and Bahamas. Collaboration with networking behemoths like Ericsson and Cisco will enable C&W Communications to add value-added services like IPTV and launch other innovative offerings.
Per the agreement, the companies will be in charge of supplying and installing IP networks of Flow – the consumer-facing brand of CWC's operations in the Caribbean – in three of its markets. Precisely, Ericsson and Cisco will upgrade the IP infrastructure in the Bahamas to support large traffic volumes and create a new business-to-business IP/MPLS network for Jamaica and Barbados. This, in turn, will aid C&W Networks to improve performance on the fixed network.
While Ericsson is offering project management services, Cisco is providing the necessary hardware for C&W Communications’ IP network transformation. In particular, Ericsson is supervising critical aspects of the project including network analysis, planning, systems integration and customer support. Cisco is supplying its state-of-the-art routers and switches including ASR9000, ASR900 and WR4500.
Ericsson-Cisco Collaboration Progresses Well
Of late, Ericsson has been aiming to build its leadership position in the ICT industry and has significantly progressed with this goal since 2015. In this regard, one of the important initiatives was entering into a next-generation strategic partnership with Cisco in the fourth quarter of 2015 to develop advanced networks. Currently, they have gained over 200 active customer engagements and some of them are turning into lucrative deals, with majority of the deals in the domain of IP (routing and transport) and services. Ericsson stated that the collaboration with Cisco will allow it to expand addressable market and generate sales in excess of $1 billion by 2018. Higher sales are also expected to be accretive to operating income in 2016.
Some of the notable clients added earlier this year include Vodafone Portugal and Aster Dominican Republic. With a plethora of business enterprises speeding up their digital transformation, Ericsson believes its partnership with Cisco will offer ample opportunities to tap new customers across multiple industries.
Reduced consumer telecom spending, including the delayed spectrum auction is playing a spoilsport for Ericsson. The company’s mobile broadband sales continue to take a beating from the soft macroeconomic environment and weakness in countries like Brazil, Russia and the Middle East. Moreover, the company has been facing investment headwinds in network developments in the Mediterranean, Northern Europe and Central Asia (especially Russia) regions as well as in Latin America and the Middle East.
Additionally, given that the company derives a major portion of its revenues in various foreign currencies, it is prone to negative impacts from currency fluctuation. During second-quarter 2016, weakening currencies across some of the major Latin America markets and floating of the Nigerian currency were the major dampeners for the company. Foreign currency fluctuations affected the Zacks Rank #4 (Sell) company sales by 7%.
Some better-ranked stocks in the same space include Ubiquiti Networks, Inc. and Clearfield, Inc. (CLFD - Free Report) , each carrying a Zacks Rank #2 (Buy).
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Ericsson, Cisco to Upgrade C&W Communications' IP Network
Leading networking equipment providers, Telefonaktiebolaget LM Ericsson (ERIC - Free Report) and Cisco Systems, Inc. (CSCO - Free Report) , recently entered into an agreement with British multinational telecommunications company, C&W Communications, to improve its IP networks in the Caribbean region.
C&W Communications is executing its investment plan to redefine customer experience in the Caribbean by upgrading its network infrastructure. The company believes that there is a pressing need for intelligent IP networking solutions in Jamaica, Barbados and Bahamas. Collaboration with networking behemoths like Ericsson and Cisco will enable C&W Communications to add value-added services like IPTV and launch other innovative offerings.
Per the agreement, the companies will be in charge of supplying and installing IP networks of Flow – the consumer-facing brand of CWC's operations in the Caribbean – in three of its markets. Precisely, Ericsson and Cisco will upgrade the IP infrastructure in the Bahamas to support large traffic volumes and create a new business-to-business IP/MPLS network for Jamaica and Barbados. This, in turn, will aid C&W Networks to improve performance on the fixed network.
While Ericsson is offering project management services, Cisco is providing the necessary hardware for C&W Communications’ IP network transformation. In particular, Ericsson is supervising critical aspects of the project including network analysis, planning, systems integration and customer support. Cisco is supplying its state-of-the-art routers and switches including ASR9000, ASR900 and WR4500.
Ericsson-Cisco Collaboration Progresses Well
Of late, Ericsson has been aiming to build its leadership position in the ICT industry and has significantly progressed with this goal since 2015. In this regard, one of the important initiatives was entering into a next-generation strategic partnership with Cisco in the fourth quarter of 2015 to develop advanced networks. Currently, they have gained over 200 active customer engagements and some of them are turning into lucrative deals, with majority of the deals in the domain of IP (routing and transport) and services. Ericsson stated that the collaboration with Cisco will allow it to expand addressable market and generate sales in excess of $1 billion by 2018. Higher sales are also expected to be accretive to operating income in 2016.
Some of the notable clients added earlier this year include Vodafone Portugal and Aster Dominican Republic. With a plethora of business enterprises speeding up their digital transformation, Ericsson believes its partnership with Cisco will offer ample opportunities to tap new customers across multiple industries.
ERICSSON LM ADR Price
ERICSSON LM ADR Price | ERICSSON LM ADR Quote
Reduced Telecom Spending: A Sore Spot
Reduced consumer telecom spending, including the delayed spectrum auction is playing a spoilsport for Ericsson. The company’s mobile broadband sales continue to take a beating from the soft macroeconomic environment and weakness in countries like Brazil, Russia and the Middle East. Moreover, the company has been facing investment headwinds in network developments in the Mediterranean, Northern Europe and Central Asia (especially Russia) regions as well as in Latin America and the Middle East.
Additionally, given that the company derives a major portion of its revenues in various foreign currencies, it is prone to negative impacts from currency fluctuation. During second-quarter 2016, weakening currencies across some of the major Latin America markets and floating of the Nigerian currency were the major dampeners for the company. Foreign currency fluctuations affected the Zacks Rank #4 (Sell) company sales by 7%.
Some better-ranked stocks in the same space include Ubiquiti Networks, Inc. and Clearfield, Inc. (CLFD - Free Report) , each carrying a Zacks Rank #2 (Buy).
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>