ARRIS International plc (ARRS - Free Report) recently inked a deal with Alphabet Inc. (GOOGL - Free Report) to utilize indigenous Ruckus technology of its subsidiary Ruckus Networks to power the Google Station Wi-Fi hotspots in three emerging countries, namely India, Indonesia and Mexico. The strategic collaboration is part of Alphabet’s broader objective to help lower the barrier to entry for network connectivity in support of Google's Next Billion Users initiative.
Google Station is a dedicated service by Google to offer high-speed, high-quality Wi-Fi platform at public places such as airports, malls, universities, railways and mass transit stations. In addition to seamless data connectivity, this simple easy-to-use solution offers monetization opportunities for its partners through advertisements to a wider section of people.
Leveraging Ruckus' patented adaptive antenna — BeamFlex technology — for improved connectivity range, better signals and maximized power efficiency, these hotspots have emerged as high-performance Wi-Fi platform for the masses. Moreover, the products are easy to install and cost-effective hence are a good option for use in a public domain.
Consumer demand for faster Internet speed with more capacity continues to grow at a healthy pace driven by increasing consumption of video. ARRIS provides the technology to enable customers to manage the exponential bandwidth growth cost effectively through steady investments in state-of-the-art technologies like DOCSIS, DSL and Next Generation PON to deliver the highest amount of bandwidth to its subscribers across physical connection.
ARRIS is transforming the entertainment experience through a holistic approach to content delivery, leveraging its expertise in the cloud, network and home to help providers anticipate demand for more personalized, relevant and mobile experiences. The alliance with Google is also expected to work in good stead for the company, generating incremental revenues and strengthening its position in the market.
The stock has underperformed the industry in the past year with an average loss of 9.5% against a rise of 2.9% for the latter. Whether the deal will boost the sagging shares of the company in the future remains to be seen.
ARRIS currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader industry are Motorola Solutions, Inc. (MSI - Free Report) and BlackBerry Limited (BB - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Motorola has a long-term earnings growth expectation of 8%. It surpassed estimates in each of the trailing four quarters with an average positive earnings surprise of 12.1%.
BlackBerry has a long-term earnings growth expectation of 18.6%.
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