Cisco, Belgacom Extend Alliance to Boost Internet Services
Cisco Systems, Inc. (CSCO) announced the extension of its partnership with Belgian telecommunications company Belgacom, which is in the process of upgrading its network.
Belgacom has purchased Cisco’s mobile Internet products including Cisco Serving GPRS Support Node (“SGSN”) and Cisco Mobility Management Entity (“MME”), which are the main components of the Cisco Aggregated Services Router ("ASR") 5000 Series.
The Belgacom Group is the largest telecommunications company in Belgium, which offers fixed line communication, mobile communications and ICT (Information and Communication Technology) services.
The alliance goes back to Oct 2013, when Belgacom had selected Cisco Aggregated Services Router ("ASR") 5000 for boosting its mobile Internet services. With the recent extension, Belgacom aims at developing its network and offering enhanced mobile Internet experiences to its subscribers.
Given the partnership and deployment of its carrier-class networking products, Cisco can further expand its reach in the European market by getting access to other telecommunication clients. It will help the company to meet growing business demand and boost its bottom line going forward.
In fact, Cisco’s fourth-quarter fiscal 2014 earnings of 50 cents beat the Zacks Consensus Estimate of 48 cents. The better-than-expected earnings were driven by improving markets for the company’s products in the United States and Europe.
The Cisco ASR 5000 Series is a carrier grade platform for deploying high-demand 3G networks and moving to the Long Term Evolution ("LTE") network. It provides mobile operators with the capability to meet network performance challenges in a cost-effective manner.
Cisco is the worldwide leader in networking for the Internet. Its recent streamlining efforts to optimize the cost structure and efforts to grow new businesses like cloud computing, consulting, managed services and security helps the company remain strong in its domain, despite growing competition.
Cisco currently has Zacks Rank #3 (Hold). Better-ranked stocks include Ametek Inc. (AME), National Instruments Corp. (NATI) and Cognex Corp. (CGNX). All these stocks carry a Zacks Rank #2 (Buy).
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