Telecom Stock Roundup: Juniper Boosts UK Network, Viasat's Brazil Expansion & More
Zacks Investment Research | Oct 02, 2019 09:05PM ET
In the past five trading days, telecom stocks witnessed a roller-coaster ride as both the United States and China blew hot and cold for a mutually agreeable solution to the 15-month old trade war. With China celebrating the 70th anniversary of communist rule with the Golden Week holiday from Oct 1-7, officials are busy preparing for the trade talks scheduled in the second week of the month. Although both sides have agreed to ease the bilateral tensions and pave the way for an early settlement of trade disputes, latent threats of the deal falling flat clouded the industry.
In his usual tirade, President Trump hinted that trade negotiations with the communist nation are likely to be reached sooner than expected. At the same time, he maintained that the deal would only be accepted if it is deemed fair to the United States and kept the options open to roll back tariffs. On the other hand, China reiterated its demand for “a solution to the problem through equal dialogue in accordance with the principle of mutual respect, equality, and mutual benefit.” With both the countries seeking a profitable solution to the crisis on domestic compulsions, they can hardly afford any slip-ups and the stakes are too high to reach an early resolution.
Meanwhile, the U.S. Court of Appeals for the District of Columbia Circuit has ruled that states could come up with their own net neutrality rules to protect consumers in the absence of federal approach. Although the court upheld the decision by the FCC to repeal net neutrality rules imposed in 2017, it maintained that the government entity does not have the legal authority to prevent federal states from framing their own law. The verdict represented a win-win solution for both the supporters and antagonists of net neutrality rules, and is likely to encourage several federal states to adopt their own set of Internet regulations.
Regarding company-specific news, network upgrade, footprint expansion, ongoing probe and R&D focus primarily took the center stage over the past five trading days.
Recap of the Week’s Most Important Stories
1. Juniper Networks, Inc. (NYSE:JNPR) has augmented the network capabilities of Telefonica (MC:TEF) UK, a leading telecommunications service provider in the United Kingdom, for the likely rollout of 5G services across the country.
The improvement in infrastructure facilities is expected to reduce the complexity of the network, while increasing operational flexibility and efficiency of Telefonica UK, which is owned by Madrid-based Telefonica, S.A. Notably, Juniper has collaborated with Telefonica to build the Fusion Network across the globe that would help deliver superior customer service through infrastructure upgrade and simplified operations. The company has presently implemented the first phase of this project in the United Kingdom with the successful migration of Telefonica UK’s services to the Fusion Network in the country. (Read more: Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.