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CommScope's Ruckus Networks Offers New Solution to Hoteliers

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CommScope Holding Company, Inc.’s COMM operating arm — Ruckus Networks — recently announced the expansion of its hospitality connectivity portfolio by adding the ICX 7150-24F fiber switch, ICX 7150-C08 compact switch and Fiber Backpack, to support the H510 access point (AP). These new products are expected to be available in early third-quarter 2019 through Ruckus channel partners.

Markedly, the products bring fiber support to existing offerings for hospitality and multi-dwelling unit customers. Coupled with CommScope’s cabling products, Ruckus can now provide customers with an end-to-end solution. It also announced the addition of new Internet of Things partners to its ecosystem to better address hospitality business objectives. This includes improving operational efficiency, guest services, and guest and staff safety.

The Ruckus Fiber Backpack is a fiber-to-Ethernet media converter accessory that provides a pluggable fiber interface for Ruckus H510 wall-mounted APs, leveraging the scale, speed and efficiency of fiber-to-the-room architecture. When paired with Ruckus fiber switches, it enables network designers to seamlessly deploy and cost-optimize end-to-end fiber solutions. Moreover, the product can use a wide range of interoperable fiber transceivers with support for single- or multi-mode, enabled by the portfolio of Ruckus ICX fiber switches.

With the acquisition of ARRIS on Apr 4, 2019, CommScope 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.

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 company is poised to benefit from favorable networking market trends, while creating shareholder value.

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 3.5% against the industry’s rise of 30% in the year-to-date period. The wireless and broadband network technology company is dealing with lower-than-expected performance in connectivity solutions unit, expecting to see improving trends in the second half of 2019.

CommScope currently has a Zacks Rank #4 (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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