Cisco Systems
(
CSCO
) has enabled SingTel to deploy the next-generation high-speed
global carrier Ethernet network called Multiprotocol Label
Switching-Transport Profile (MPLS-TP) technology for its business
customers.
Singapore-based Singapore Telecommunications Limited or
SingTel is a public limited telecommunications company. It
provides ISP (SingNet), IPTV, mobile phone (SingTel Mobile
Singapore) and fixed line telephony services to its
customers.
Backed by Cisco's MPLS technology, SingTel can provide higher
bandwidth and its business customers will now enjoy high-speed
reliable Internet connection globally.
The MPLS-TP technology supports applications that require high
bandwidth. In addition, demand for such applications is
increasing and is evident from the surging popularity of IPTV or
watching videos on hand-held devices.
While high bandwidth comes at a higher price, many service
providers are changing their network to MPLS-TP so that they can
provide services at a reasonable cost. Thus, we do sense a
positive road ahead for this particular technology. This in turn
may become positive for Cisco in the long term.
Much like Cisco,
Juniper Networks
(
JNPR
) is actively deploying the MPLS-TP technology to provide its
customers higher bandwidth at an affordable price.
According to Cisco's own internal Visual Networking Index
(VNI), the annual global IP traffic may reach 1.3 zettabytes by
2016. The growth will come from a rise in the number of devices
(VNI predicts 18.9 billion network connections by 2016) and a
rise in Internet users (VNI forecasts 3.4 billion Internet users
by 2016).
Cisco's revenue in the first quarter of fiscal 2013 increased
5.5% year over year to $11.69 billion and was better than
management's expectations (up 2-4%). Products (78.3% of total
revenue) were up 3.9% year over year to $9.30 billion. Services
(21.7% of total revenue) jumped 11.9% year over year to $2.58
billion.
Both Cisco and Juniper carry a Zacks Rank #2 (Buy).
CISCO SYSTEMS (CSCO): Free Stock Analysis
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