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ADTRAN (ADTN) Unveils Fiber Access Solution, Narrows Digital Gap

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With several network service providers putting forth strategies to deploy high-speed connectivity in rural areas, ADTRAN, Inc. (ADTN - Free Report) has taken the initiative a notch higher with the launch of Total Access 5004 (TA5004) Micro-Cabinet. The avant-garde fiber access platform enables rural, last-mile subscriber reach deployments and drives time-to-market for broadband services delivery in an effort to narrow the digital disparity.

Installing fiber access technology in rural areas can be quite challenging due to low population densities and lack of facilities. Consequently, escalated subscriber connection costs pose a major headwind.

Hence, the streamlined network infrastructure provided by ADTRAN’s TA5004 Micro-Cabinet will aid businesses and households to fulfill their growing networking demands such as distance learning and remote work. At a time when the entire world is reeling under the calamitous impact of the pandemic with acute necessity of high-speed broadband services, the move is eyed as a beneficial one.

Markedly, the Federal Communications Commission has been leaving no stone unturned to help companies deliver enhanced rural gigabit coverage on the back of initiatives like Rural Digital Opportunity Fund, and ADTRAN’s TA5004 Micro-Cabinet is considered an ideal solution to serve the purpose. The modular, remote fiber access platform supports rural broadband buildouts and enables service providers to deliver low-density fiber to the home (FTTH) solutions in a cost-effective manner.

Touted as industry’s most flexible 10G rural broadband solution, the TA5004 Micro-Cabinet is an out-and-out FTTH platform that can be deployed in both greenfield and brownfield rural broadband networks. Notably, installation and configuration of greenfield networks, which are unique networks, are done from the scratch whereas brownfield deployment leverages legacy components and involves the installation of revamped networks.

Equipped with Combo PON technology, the solution aids service providers to effectively generate higher broadband revenues with minimized sparing and commissioning expenses. It is also integrated with cooling and multiple powering options that facilitate faster gigabit deployments while delivering seamless coverage to the underserved communities with expanded network footprint to establish a future-proof network infrastructure.

That said, the addition of the latest entrant will enhance ADTRAN’s broad portfolio of distributed access solutions, which in turn, is likely to overcome various deployment hurdles while catering to dynamic networking requirements of rural-based service providers.

ADTRAN is optimizing its customer, geographic and product diversity momentum as communication service providers scale up their network capabilities. The Huntsville, AL-based company is well poised to benefit from accretive customer engagements across its portfolio of software-defined access, 10G solutions and G.fast products.

Its network implementation services provide speed and scale to build fiber and fixed wireless networks. This, in turn, enables service providers to reach more customers and expand their competitive edge. The company’s global strategy of diversification across geographies and markets augurs well for growth.

The stock has soared 109.8% compared with the industry’s growth of 79% in the past year.



ADTRAN currently has a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader industry are Aviat Networks, Inc. (AVNW - Free Report) , Ubiquiti Inc. (UI - Free Report) and Ericsson (ERIC - Free Report) . While Aviat Networks and Ubiquiti sport a Zacks Rank #1 (Strong Buy), Ericsson carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Aviat Networks delivered a trailing four-quarter earnings surprise of 61.7%, on average.

Ubiquiti delivered a trailing four-quarter earnings surprise of 37.1%, on average.

Ericsson has a long-term earnings growth expectation of 28.9%.

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