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ADTRAN (ADTN) Expands Fiber Network in Oakland With Sonic Tie-Up

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ADTRAN, Inc. (ADTN - Free Report) has partnered with Internet Service Provider (ISP), Sonic, to enhance the latter’s network infrastructure with the deployment of Total Access 5000 (TA5000) 10G fiber access platform and Combo PON technology.

The deployment will help the ISP to not only augment its fiber network in the highly-competitive region of Oakland, CA but also expand its market share while supporting the latest broadband technologies.

Sonic, a leading fiber-optic Internet and phone services provider, is based in California. Its 100% fiber network provides seamless connectivity using the most advanced technology available in the market. It is currently focused on extending its fiber network and multi-gigabit services in Oakland.

The company aims to cater to the accretive requirements of bandwidth-hungry subscribers while addressing future networking demands. In sync with this, the installation of ADTRAN’s TA5000 and Combo PON technology will support crucial digital initiatives like cloud services and IoT with reliable connectivity.

ADTRAN’s TA5000 is the highest density 10G PON solution available in the U.S. market and forms an integral component of the industry’s most comprehensible 10G fiber access portfolio. It enables service providers to rapidly expand network capacity and deliver advanced multi-gigabit services with reduced time to market.

The platform accelerates service velocity and simplifies network planning and capacity management to minimize operating expenditure. The 10Gbps fiber broadband will enable Sonic customers to avail exceptional broadband services and simultaneously protect Sonic's market share, thereby driving California’s network infrastructure.

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 growing 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.

ADTRAN’s shares have rallied 80.9% in the past year against the industry’s decline of 0.3%.

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Per the partnership, Sonic will also leverage ADTRAN’s Combo PON technology. The Combo PON technology supports both GPON and XGS-PON services over a single common interface. This creates a reduction in space and power with negligible capital expenditures for establishing a future-proof fiber-to-the-home network. Apart from an expanded gigabit coverage, this next-gen fiber access technology offers service providers greater network ROI.

Driven by such a diligent endeavor, the latest network modernization initiative is likely to not only boost ADTRAN’s capabilities as an end-to-end fiber broadband solutions provider in the global market but also enable network operators to address highly competitive new market demands with differentiated service offerings. This will help in expanding its diverse client base, including business and residential customers.

Zacks Rank & Stocks to Consider

ADTRAN currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader industry are InterDigital, Inc. (IDCC - Free Report) , Nokia Corporation (NOK - Free Report) , and Wireless Telecom Group, Inc. (WTT - Free Report) . While InterDigital sports a Zacks Rank #1 (Strong Buy), Nokia and Wireless Telecom Group carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

InterDigital delivered a trailing four-quarter earnings surprise of 536%, on average.

Nokia delivered a trailing four-quarter earnings surprise of 202.7%, on average.

Wireless Telecom Group delivered a trailing four-quarter earnings surprise of 27.5%, on average.