UPDATED 13:12 EDT / MARCH 31 2011

Juniper’s Lucky Streak Continues With Verizon Deal, Goldman Sachs Explains

There is no better way to respond to AT&T’s big exposition last week but to announce a dreamy 100G project in the United States, brought to you by no less than the fiercest competitor, Verizon. This speedy technology is expected to hit selected parts of the country before the end of the 2nd quarter of 2011. While the two titans continue to clash, Juniper Networks benefits, big time.

Goldman Sachs sees the boost in Juniper’s overall stance in the industry, having both AT&T and Verizon under their strong portfolio of clients: “We view the announcement as an incremental positive for Juniper. For context, Verizon is Juniper’s largest customer at around 10% of revenues. We believe the win is with Juniper’s existing T1600 core router, rather than its next-gen T4000 core router… This supports our thesis that the routing market (about 50% of Juniper sales) will continue to grow at an above-consensus rate of around 20%.”

Goldman Sachs made a very conclusive report and emphasized three key important things about this Verizon deal on Juniper Networks backyard. First, Verizon choosing Juniper’s routers is no surprise, being the existing vendor of their core network. Secondly, having this in Q2 would offset worries from the Japan quake’s impact on the company’s revenue. Lastly, the demand for optical equipment for this colossal project would just squeeze the best out of Juniper’s capacity.

Aside from slurping up good luck charms, New World Telecom tapped Juniper’s Ethernet Network is to support their Metro Ethernet Services and mobile operators. It also joined some of the key players in the open software sphere and announced entry to Eclipse Foundation.

This whole network, AT&T-Verizon war and high speed internet craze has also attracted Google’s attention. Although this is not within their line of business, the search engine mogul may just try to take in the spotlight with its plan to deploy an ultra-fast broadband network in Kansas City.


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