Why I Own Sonus Networks
Sonus Networks is hardly a household name. After shedding a few unnecessary product lines, the company doubled down on Session Border Controllers -- the networking boxes that translate voice calls into Internet-ready data streams and back again.
Celebrated or not, Sonus happens to be a leader in this very particular market. It rubs shoulders with tech giants Cisco Systems and Oracle , and this threesome splits about 60% of the border controller market in three equal slices.
The space is consolidating, and Sonus might be the next buyout target. If Cisco doesn't grab the company to consolidate its own market share, then perhaps Microsoft would be a logical suitor. With or without a buyout, Sonus is looking ahead to explosive growth as telecoms start embracing voice over LTE services.
In the following video, Fool contributor Anders Bylund explains how this slow-burn turnaround bet could catch fire over the next five or 10 years as the digital voice market matures. It's all about focusing on the right target markets, and Sonus hit the jackpot this time.
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The article Why I Own Sonus Networks originally appeared on Fool.com.Fool contributor Anders Bylund owns shares of Sonus Networks, but he holds no other position in any company mentioned. Check out Anders' bio and holdings or follow him on Twitter and Google+. The Motley Fool recommends Cisco Systems and owns shares of Oracle. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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