Juniper Networks Inc. (JNPR), one of the leading providers of networking infrastructure products and services, announced that its new network infrastructure will be deployed by New World Telecommunications Limited (New World Telecom). Financial terms of the deal were not disclosed.
Hong-Kong based New World Telecom pioneered the provision of telecom services in the region. The company offers international voice and data services within Hong-Kong as well as overseas. The company plans to maintain its lead in the advanced telecom and managed services segment by investing in technology and catering to the ever-increasing demand in the market.
With the help of Juniper’s new network architecture, New World Telecom will be able to set up the base for developing the next-generation Metro Ethernet services platform. To help develop the platform, Juniper will tie with its partner Nokia Siemens Networks. The advanced Ethernet-services will leverage Juniper’s MX Series 3D Universal Routers. The new and developed services provided by New World Telecom will help its customers’ access point-to-point and any-to-any connectivity.
Juniper’s networking architecture runs on the Junos operating software, which simplifies networking operations and reduces the cost of ownership. Moreover, the platform provides room for enhancement of capabilities without additional capital outlay. These factors primarily led to New World Telecom’s selection of the Juniper offering.
We remain encouraged by the rapid deployment of Juniper’s networking products and services by organizations and government verticals to meet the growing business demand. We also appreciate Juniper’s continuous efforts to make strategic acquisitions, which enrich its product portfolio.
However, stiff competition from market leader Cisco Systems Inc. (CSCO) and the upcoming networking company Hewlett-Packard Company (HPQ), as well as Juniper’s European exposure are likely to weigh on the shares.
Currently, Juniper has a Zacks #3 Rank, implying a short-term Hold recommendation.
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