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ADTRAN (ADTN) Spurs FTTH Deployments With NCTC Collaboration

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ADTRAN, Inc. (ADTN - Free Report) recently announced that it has joined forces with National Cable Television Cooperative, Inc. (“NCTC”) to boost the latter’s 700 plus-member base of cable and broadband operators with its avant-garde portfolio of multi-gigabit and fiber access solutions. These offerings include Mosaic Subscriber Suite as well as professional and support services. The integration of these breakthrough solutions will enable the cable operators to augment network flexibility and deliver high-quality Internet connectivity to customers in rural America, while strengthening fiber-to-the-home (FTTH) strategy as part of ADTRAN’s 10G initiative.

With an industry experience of nearly 36 years, NCTC functions as a programming and hardware purchasing corporation for its member companies that primarily consists of small and mid-sized independent cable and broadband operators. The Kansas-based non-profit organization creates tailor-made programs that minimizes operational overheads, introduces next-gen technologies and optimizes bandwidth with new revenue generating paths to achieve maximum profitability. NCTC primarily caters to the network deployment requirements of operators for a streamlined infrastructure. It also offers assistance with strategic tools and resources that enable members to fortify presence in the evolving media landscape.

Apart from smart home solutions, NCTC will capitalize on ADTRAN’s much-acclaimed Total Access 5000 (TA5000) along with 10G Passive Optical Network and 10G Ethernet PON solutions. The Mosaic Subscriber Suite is considered to be a one-stop shop solution for management software and subscriber insight that offers cloud-based tools for efficient network management. Meanwhile, TA5000 solution enables service providers to rapidly expand network capacity and deliver top-notch multi-gigabit services with reduced time-to-market. The innovative platform supports burgeoning network demands with greater scalability and simplifies operations like network planning and capacity management to minimize operating expenditures.

The contract also includes certain specialized offerings like resident engineer support services with access to network evaluation and audit services, which will aid NCTC members to seamlessly design, test, deploy and manage their respective networks with utmost agility. Currently, more than 200 members, including Consolidated Communications Holdings, Inc. , Vast Broadband and Comporium, are using ADTRAN’s advanced fiber access solutions. The latest alliance is expected to not only drive NCTC’s endeavors in setting up a modernized network infrastructure but also augment ADTRAN’s exposure to NCTC’s membership as several telcos and cable operators deploy upgraded access platform to support enhanced network capacities at affordable service rates to stay competitive.

It is worth mentioning that ADTRAN’s 10G fiber access technology is well positioned to optimize its customer, geographic and product diversity momentum as service providers seek to improve speed and augment network capabilities. Despite challenging macroeconomic conditions associated with the COVID-19 pandemic, the Huntsville, AL-based company expects healthy momentum in its domestic markets for ultra-broadband and FTTH solutions. It also anticipates a pickup in capital spending in Tier-1, Tier-2 and regional service provider market segments. Further, ADTRAN’s global leadership in software-defined access is likely to ensure a steady stream of revenues as it helps clients reduce cost and accelerate service delivery and deployment.

ADTRAN’s shares have gained 39.3% compared with the industry’s growth of 46.6% in the past year.

ADTRAN currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader industry are Plantronics, Inc. (PLT - Free Report) and Calix, Inc. (CALX - Free Report) . While Plantronics sports a Zacks Rank #1 (Strong Buy), Calix carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Plantronics delivered a trailing four-quarter positive earnings surprise of 568.2%, on average.

Calix delivered a trailing four-quarter positive earnings surprise of 72.2%, on average.

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