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Juniper to Power WorldLink's Networking Solutions in Nepal

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Juniper Networks, Inc. (JNPR - Free Report) recently announced that it has been selected by WorldLink — the largest Internet service provider in Nepal — to supplement its networking solutions in order to cater to the exponential growth of data traffic in the country. The strategic move will facilitate Juniper to develop the networking infrastructure of Nepal and enable its smooth transition to a high-speed 100GbE backbone network.

This land-locked country in South Asia has witnessed massive growth in data connectivity as exemplified by government records, which show that Internet penetration has surged from 10% in 2011 to nearly 50% at present. WorldLink’s own customer base has doubled each year since 2014 with broad-based growth across the rural and urban regions of the country.

In order to effectively handle this burgeoning customer base and the subsequent spike in demand for higher broadband data, WorldLink has partnered with Juniper to leverage its broad range of routing, switching and security products. This is likely to enable WorldLink to support the sustained growth in data traffic while also providing cost-efficient, streamlined network management across the country.

Juniper’s networking architecture runs on a single open source operating software named Junos. A common platform spanning across all the routing, switching and security areas reduces complexity in increasingly complex data centers. Juniper also offers a Software Development Kit to its partners and customers to allow additional customization. These factors are deemed to be real differentiators for the company, giving it a competitive advantage.  

Moving forward, 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 its 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 usage of smartphones and tablets, mobile data traffic has gone up. This has resulted in growing demand for advanced networking architecture, in turn, 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 the incremental growth in data traffic.

In the past year, Juniper has gained 2.2%, underperforming the industry’s growth of 19.5%. Whether such favorable contracts can boost the company’s shares in the future remain to be seen.


 

Juniper currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry are Ribbon Communications Inc. (RBBN - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and Clearfield, Inc. (CLFD - Free Report) and QUALCOMM Incorporated (QCOM - Free Report) , both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Ribbon Communications has a long-term earnings growth expectation of 12%. It delivered an average positive earnings surprise of 168.1% in the trailing four quarters.

Clearfield delivered an average positive earnings surprise of 52.8% in the trailing four quarters.

QUALCOMM has a long-term earnings growth expectation of 10.9%. It delivered an average positive earnings surprise of 19.8% in the trailing four quarters.

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