Cisco Systems Inc.
) announced that it's ASR 5000 Series multimedia services
platform has been selected by T-Mobile to manage T-Mobile's
mobile data traffic from its new long-term evolution (LTE)
network and its 2G/3G networks in the Czech Republic.
Cisco's ASR 5000 routing platform has the ability to optimize
video transmissions while managing traffic efficiently. It is one
unified platform that will help T-Mobile solve the complexities
of the mobile network. The solution comes with predictive
monitoring and a broader range of multimedia services and is
expected to be implemented this year.
Thus, T-Mobile will benefit from Cisco's expertise in network
efficiency, which in turn will help itto enhance network speed
and connectivity, reduce certain overhead costs and offer
innovative services to its customers.
Cisco expects worldwide mobile data traffic to grow 13 times
from 2012 to 2017 to a total annual volume of 134 exabytes in
2017, partly due to continued strong growth in the number of
mobile Internet connections. Therefore, Internet speed will be a
vital factor for the success of any telecom company.
The LTE technology is capable of delivering mobile Internet
speeds that are up to 10 times faster than 3G connections, thus
allowing customers to stream, download and upload games more
efficiently. It has a quicker response and processing time as
It supports applications such as Internet Protocol (IP)
telephony, mobile web access, gaming services, 3D television,
high-definition (HD) mobile TV, video conferencing and cloud
computing. It uses the spectrum more efficiently than other
technology, creating more space for data traffic and services
that can ultimately deliver a better network experience to
According to Strategy Analytics, LTE network connections may
reach 322 million in 2013 and 1.6 billion by 2017. Further,
another report by Juniper Research suggests that 4G LTE revenues
may reach $100.0 billion by 2014 worldwide.
Thus, the rapid adoption of LTE technology worldwide owing to
the increasing use of smart devices, is compelling network
carriers to prioritize technology upgrades as slow Internet speed
could increase customer churn. This might prove beneficial for
Cisco, given its product portfolio and broad reach across
Cisco's third-quarter fiscal 2013 revenues increased 5.2% year
over year to $12.2 billion, driven by strength in data center and
wireless businesses. Earnings of 48 cents were also higher than
the Zacks Consensus Estimate on higher revenues and
lower-than-expected operating expenses.
Cisco carries a Zacks Rank #4 (Sell). Stocks worth considering
in the sector include
Silicom Ltd Ord
), all carrying a Zacks Rank #2 (Buy).
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