Yahoo Finance AT&T (T) Teams Up With Vonage to Boost Network Capabilities
AT&T Inc. T recently joined forces with Vonage to elevate the power of network by combining AT&T’s API-enabled network capabilities with Vonage's communications and network APIs. The main purpose of the initiative is to build an innovative ecosystem for developers to leverage the APIs to drive the creation of enhanced communication-related applications and diverse solutions.
Headquartered in New Jersey, Vonage became a wholly-owned subsidiary of Ericsson in 2022. This global leader in cloud communication services offers a comprehensive suite of communications APIs, including voice, video, messaging and verification, as well as a portfolio of AI-capable, low-code/no-code programmable components that leverage and simplify the development of applications.
By combining AT&T’s best-in-class network capabilities with Vonage’s network APIs, developers can easily integrate communication and network services into their applications, products or services with advanced security features and 5G exposure. Exposing 5G capabilities through APIs is likely to enhance the adoption of 5G services. This, in turn, is expected to boost the company’s 5G market presence as the demand for such applications increases.
The company is focused on extending adaptable communications and network APIs to a broad community of developers with the aim of promoting flexibility and business case development backed by enhanced security. Standardized CAMARA APIs, such as Vonage Number Verification API, are critical in combating fraud without interrupting the user’s sign-in process.
In addition, AT&T Device Access API ensures improved security to mobile phones through Single-Sign-On along with Vonage SIM Swap API that integrates SIM swap detection and management functionality into applications to provide extra protection and reduce the risk of fraud. As demand for enhanced security is becoming a growing concern for enterprises, this is likely to give AT&T an edge over other players in the telecom market.
The strategic partnership between AT&T and Vonage is set to benefit the technology sector by providing developers with access to advanced network services and capabilities. As the user-friendly APIs reach out to a major chunk of the developers’ community, the collaboration is likely to open new revenue-generating avenues for the company. Moreover, the demand for API that can seamlessly incorporate with 5G technology is expected to see a hike in the years to come, and the company’s potential to effectively harness the ongoing demand will determine its market position in the long run.
The stock has lost 12% over the past year compared with the industry’s decline of 0.8%.
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Zacks Rank & Key Picks
AT&T carries a Zacks Rank #3 (Hold) currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Arista Networks, Inc. ANET, carrying a Zacks Rank #2 (Buy), is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 17.4% and delivered an earnings surprise of 12%, on average, in the trailing four quarters.
It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed data center segment. Arista is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.
Ubiquiti Inc. UI, carrying a Zacks Rank #2 at present, is a key pick in the broader industry. Headquartered in New York, it offers a comprehensive portfolio of networking products and solutions for service providers and enterprises at disruptive prices.
It boasts a proprietary network communication platform that is well-equipped to meet end-market customer needs. In addition, it is committed to reducing operational costs by using a self-sustaining mechanism for rapid product support and dissemination of information by leveraging the strength of the Ubiquiti Community.
Headquartered in Wilmington, DE, InterDigital, Inc. IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks.
This Zacks Rank #2 stock has a long-term earnings growth expectation of 17.4% and has surged 75.3% in the past year. A well-established global footprint, diversified product portfolio and ability to penetrate different markets are key growth drivers for InterDigital. The addition of technologies related to sensors, user interface and video to its already strong portfolio of wireless technology solutions is likely to drive considerable value, given the massive size of the market it offers licensing technologies to.
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