Cisco Systems Inc. ( CSCO ) announced that
it has been selected by the Australian unit of Vodafone
Hutchison ( VOD ) to supply its ASR
5500 mobile multimedia platform when Vodafone deploys its 4G
long-term evolution (LTE) network.
Cisco's ASR 5500 mobile multimedia platform has the ability to
simplify capacity while managing traffic efficiently. It also comes
with proactive, predictive monitoring and management capabilities.
The platform bridges the gap between mobile telecommunication
providers and customers. Thus, Vodafone will benefit from Cisco's
expertise in network efficiency which in turn will help it to
successfully offer 4G benefits to its customers in Australia.
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 well. 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 technologies, creating more space to
carry data traffic and services that can ultimately deliver a
better network experience to the users.
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
$340.0 billion by 2017 worldwide.
Thus, rapid adoption of LTE technology worldwide, strengthened
by the rise in 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 geographies.
Cisco's revenues in the second quarter of fiscal 2013 increased
5.2% year over year and 1.7% sequentially to $12.1 billion.
Products (78.0% of total revenue) were up 3.3% year over year to
$9.4 billion. Services (22.0% of total revenue) jumped 12.5% year
over year to $2.7 billion.
Cisco carries a Zacks Rank #4 (Sell). Other stocks that are
equally worth considering include STMicroelectronics
NV ( STM ),
Magnachip Semiconductor Corp. ( MX ) and Lam
Research Corp. ( LRCX ), all carrying a
Zacks Rank #2 (Buy).CISCO SYSTEMS (CSCO): Free Stock Analysis
ReportLAM RESEARCH (LRCX): Free Stock Analysis ReportMAGNACHIP SEMI (MX): Free Stock Analysis ReportSTMICROELECTRON (STM): Free Stock Analysis
ReportVODAFONE GP PLC (VOD): Free Stock Analysis
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