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Verizon Boosts Hybrid Networking in Collaboration With Cisco

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Verizon Communications Inc. (VZ - Free Report) recently partnered Cisco Systems, Inc. (CSCO - Free Report) to simplify its network and enhance user experience with improved mobility, storage and security. The two companies have successfully conducted test of Cisco’s hybrid open-source Information-Centric Networking (ICN) software at a Verizon lab located in Waltham, MA.

The ICN technology simplifies network by using “named data” instead of location identifiers such as IP addresses. The trial showcased how ICN technology marks an improvement over traditional Transmission Control Protocol/Internet Protocol (TCP/IP) networking. ICN offers dynamic adaptive streaming solutions and dynamic load balancing of video media. This is expected to enhance the viewing experience and reduce bandwidth requirements by reducing the distance traveled by the content.

The technology uses a content-specific naming method instead of an IP address. This allows more efficient delivery of streaming content to a mobile network irrespective of the user’s location. A user may move between different cell sites or different network access methods like 5G or WiFi. Verizon also showed how ICN technology can be inserted into existing IP infrastructure, thus enabling coexistence with legacy IP traffic.

The benefits of a virtualized Hybrid-ICN network implies how technology can simplify the way users access content in a mobile environment. The trial mostly focused on management of streaming video content. We remind investors that online video streaming has gained an advantage over pay-TV operators in the industry because of their cheap source of TV programming. Thus, operators are either launching Internet-TV services or inking deals with online video streaming service providers such as Netflix, Hulu.com and to retain customers.

Hybrid networking seems to be gaining popularity. Verizon’s rival, AT&T also offers hybrid networking options through its AT&T SD-WAN to help businesses simplify their network management and reduce costs.

Zacks Rank & Stocks to Consider

Verizon is a Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the broader Computer and Technology sector include United States Cellular (USM - Free Report) and Harris Corporation . While United States Cellular sports a Zacks Rank #1 (Strong Buy), Harris carries a Zacks Rank of #2 (Buy).

The projected earnings growth rate (3-5 years) for United States Cellular and Harris are 1% and 6%, respectively.

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