03 Jun 4 Reasons Why Ribbon Communications Is Ideal for Your Investment Watchlist!
Ribbon Communications, Inc. (NASDAQ: RBBN) provides comprehensive end-to-end communications and networking solutions such as session border controllers, policy routing and signaling, Intelligent Edge, uCPE, call controllers, XaaS and Media Gateways to enterprises across the globe. The Company caters to the needs of leading tier-one internet service providers and enterprises, including banks, healthcare, government and critical infrastructure companies.
The Company’s client list includes industry leading organizations such as AT&T, Verizon, Telefonica, Digicel, Rogers, Sasktel, Vodafone, Liberty Global, Optus and Telstra to name a few.
Ribbon Communications Inc. (NASDAQ: RBBN)
Market Cap: $ 1.12B; Current Share Price: 7.58 USD
Data by YCharts
A Portfolio of Leading-Edge Products and Services
Ribbon is focused on two business verticals namely IP Optical Networks and Cloud & Edge and offers services such as Voice Over IP applications, MSO Network transformations, network insights, 5G-native mobile backhaul and transport, TDM/SONET migration to packet and Cyber-security for critical infrastructure among others.
Ribbon markets its IP and optical network products under the Apollo Optical Systems, Neptune IP Systems and Muse Domain Orchestration brand names and extends its services to both service providers and enterprises.
Most recently, the Company announced the launch of its new TM400_2 line card, a part of the Apollo networking solutions, which uses 400G ZR+ and has the potential to disrupt optical transport economics.
Sam Bucci, Executive Vice President & General Manager of Ribbon’s IP Optical Networks Business Unit commented
“With traffic loads increasing, our customers are looking for a revolutionary transport solution that meets today’s and tomorrow’s needs. We’re proud to be the first to market with this flexible, cost-effective solution.”
An Industry with High Growth Potential
Fiber-optic communication uses infrared light to transmit information from one place to another. Optical networks are fast emerging as the preferred choice of communication for companies seeking higher bandwidth, interference-free, long-distance communication to transmit different types of data such as video, voice and telemetry. Optical fibers play an important role in relaying telecommunications, internet and television signals and are now becoming an integral part of communication solutions in important areas such as defense, medicine and industry.
The technology uses an optical transmitter, which can convert electrical signals into an optical signal that are then transmitted through optical fiber cables routed through an underground conduit system consisting of different kinds of amplifiers and an optical receiver, which then converts these into an electrical signal.
Wavelength division multiplexing is a technology that regulates varied data streams and wavelengths of laser light, onto a single optical fiber. It not only enables bi-directional communication but also facilitates multiplication of signal capacity. The system uses a multiplexer to join multiple signals together and a demultiplexer to split them apart. They are extremely popular and much sought after as they allow telecommunication players to expand their network offering, without having to lay down actual fiber. These enable the telecommunication provider to assimilate technology development in their existing optical structure and increase or decrease the capacity of a link, without having to make any changes to the existing network.
According to a report by Prescient & Strategic Intelligence the global optical networking and communication market size, which was valued at $16.9 billion in 2019, is likely to grow at a CAGR of 6.2 to reach $32.8 billion by 2030. The advent of the internet and rapid globalization is driving the demand for high-quality, reliable data transmission. Increased adoption of IT –based solutions, the need for networking in almost all spheres of life and growing demand for mobile and internet services are other factors which are contributing to the growth in the industry. Optical transmission is rapidly emerging as one of the fastest growing industries owing to reliability and ease of implementation. Wavelength Division multiplexing is emerging as one of the most focal segments of the global optical equipment market and will record the highest CAGR during the forecast period according to the report.
Company
Ribbon Communications is a premier communications software and network solutions provider, which delivers optical networking solutions and communication software to leading service providers and enterprises across the globe. The Company’s end-to-end solutions provide unmatched scale, performance through cloud-based solutions, security and analytics and cutting-edge optical solutions for 5G deployment.
Image Source: Company
Furthermore, the Company’s solutions include next-generation Internet Protocol, Session Initiation Protocol, Voice over LTE Long Term Evolution, Voice over LTE Long Term Evolution (VoLTE), Voice over Internet Protocol (VoIP), Unified Communications (UC), Web-based Real Time Communications (WebRTC), Edge Computing, Software-Defined WAN (SD-WAN), Analytics among others. Ribbon serves more than a thousand customers globally, enabling them to transform and deploy communications networks and services.
Ribbon’s product portfolio consists of IP systems, session border controllers, network edge orientation, call routers, soft switches and media gateways and leading-edge cloud and edge solutions to name a few. The Company has an extensive presence in over 140 countries, with offices in more than 80 offices. Ribbon has reportedly brought in $840 million dollars in annual revenue in 2020.
The Company’s operations are spread across North America, Central and Latin America, Asia Pacific, Europe and the Middle East and counts as customers, some of the leading service providers globally such as BT, Verizon, CenturyLink, Deutsche Telekom, Softbank, TalkTalk and Tata, besides catering to government entities such as US Department of Defense, the University of Texas at Austin, The City of Los Angeles and the Los Angeles Public Library.
Growing from Strength to Strength!
In March 2020, the Company acquired ECI Telecom Group ltd, a company which provides optical transport and SDN/NFV solutions., creating a premier communications software and networking entity, capable of offering advanced networking solutions to a broader customer base. The move will help Ribbon gain a foothold in the high-growth 5G market, while significantly improving its customer offerings to include ECI’s leading-edge packet optical transport solutions.
Image Source: Company
Commenting on the merger, Bruce McClelland, President and Chief Executive Officer of Ribbon opined,
“Our expanded product offering combines ECI’s leadership in packet optical networking with our existing proven portfolio of software-based, real-time communications security, analytics and digital transformation solutions. Our new organization will leverage the strength and presence of our global sales force to create a very formidable market leader in the communications industry.” He further stated, “ECI’s solutions are specifically designed to address the rapidly growing 5G ecosystem. We look forward to working closely with all of our employees to leverage Ribbon’s strong foundation to build sustained, long-term growth.”
In December 2020, the Company announced the completion of acquisition of Kandy Communication by the American Virtual Cloud Technologies, Inc (AVCT). The deal enables AVCT to acquire a full portfolio of UCaaS, CCaaS, and CPaaS products to offer carrier-grade, global cloud communications suitable for the needs of medium and large enterprises.
Key Takeaways
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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References
https://www.psmarketresearch.com/market-analysis/-optical-networking-and-communication-market
https://www.psmarketresearch.com/market-analysis/-optical-networking-and-communication-market
https://investors.ribboncommunications.com/static-files/652d8f31-cbaf-4dcd-b980-e523c32ddf75
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