CommScope Holding Company, Inc.’s COMM business unit, ARRIS, recently announced that SaskTel — a leading information and communications technology provider in Saskatchewan, Canada — has chosen the ARRIS HomeAssure solution to provide top-tier Wi-Fi services to broadband customers across the region.
In this context, CommScope has acquired ARRIS on Apr 4, 2019. It is now better positioned to capitalize on long-term industry growth trends, including network convergence, fiber and mobility everywhere, Internet of Things, demand for additional bandwidth, low latency and ultra-high reliability.
Markedly, the avant-garde solution helps in delivering high-quality Wi-Fi experience coupled with improved coverage and performance, while automatically optimizing the home network. It also facilitates set-up for the increasing number of Wi-Fi devices and applications in subscribers’ home. In unison with ARRIS’ broadband gateways and extenders, the solution will likely operate to cover homes in fast, reliable Wi-Fi.
CommScope is optimizing its excellent customer relationships and competitive position, paving the way for healthy mobility solutions business, as communication service providers continue to build out their networks to increase capacity and coverage. The state-of-the-art technology solution is creating new efficiencies for SaskTel that will help manage operating and support costs for Internet service.
Moreover, the ARRIS HomeAssure Self-Service app will allow SaskTel subscribers to find devices which are on their home Wi-Fi network and detect weak Wi-Fi signal locations. Reportedly, SaskTel will use the HomeAssure solution together with the ARRIS NVG448BQ residential gateways, VAP4641 wireless extenders, GPE2001 G.hn extenders, and the ECO Self-Service cloud-based Wi-Fi management and mobile app, to maximize Wi-Fi performance and coverage.
In addition, CommScope remains focused on sound technology, highly efficient supply chain and continuous improvement. This will potentially make it a preferred partner for all telecommunications businesses, as the industry shifts to 5G. With operators moving toward converged or multi-use network structures, combining voice, video and data communications into a single network, CommScope is actively developing solutions designed to support wireline and wireless network convergence, which is crucial for the success of 5G technologies.
CommScope has long-term EPS growth expectation of 20%. The stock has lost 2.4% against the industry’s rise of 29.9% in the year-to-date period. The wireless and broadband network technology company is dealing with lower-than-expected performance in connectivity solutions business. However, it is poised to benefit from favorable networking market dynamics and expects to see improving trends in the second half of 2019, while creating shareholder value.
CommScope currently has a Zacks Rank #5 (Strong Sell). A few better-ranked stocks in the broader industry are ADTRAN, Inc. ADTN, Bandwidth Inc. BAND and Motorola Solutions, Inc. MSI. While ADTRAN sports a Zacks Rank #1 (Strong Buy), Bandwidth and Motorola carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ADTRAN has long-term earnings growth expectation of 5%.
Bandwidth has long-term earnings growth expectation of 10%.
Motorola has long-term earnings growth expectation of 7.7%.
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