Touted as a first of its kind partnership,
ADTRAN, Inc. ( ADTN Quick Quote ADTN - Free Report) has collaborated with KGPCo and FiberRise to offer end-to-end, utility-grade broadband solutions and differentiated services to the electric utilities. The alliance will enable nationalized entities and electric cooperatives to fast-track the funding and deployment of multigigabit fiber networks in rural areas. Headquartered in Faribault, MN, KGPCo modernizes and optimizes network infrastructure with future-proof solutions. The company is a primary strategic partner to the world’s leading communication and technology entities. Driven by unrivaled expertise, it amalgamates network services and supply chain solutions to drive innovation in the global market. Based in Huntsville, AL, FiberRise is a telecommunications company that caters to investor-owned utilities with reliable and affordable broadband networks. It is the sole fiber optics broadband solutions provider to offer a utility-grade broadband network. As fiber projects are complex, FiberRise partners with key industry leaders to help customers reach their goals with greater operational efficiencies. It is worth mentioning that critical broadband services are essential for connecting rural communities. Hence, the latest move to strengthen broadband and grid modernization efforts on the back of in-depth expertise, automation software, labor and supply chain capabilities in a single turnkey program comes as a major boon. ADTRAN’s shares have returned 41.7% in the past year against the industry’s decline of 40.1%. Image Source: Zacks Investment Research
The alliance will also enable program participants to scout for new federal funding opportunities and operate fiber broadband systems with guaranteed financial support in less than 10 months. This will help eliminate the digital divide between urban and rural areas with sustainable fiber-based connectivity.
Utility Grade Broadband automates operational workflows and facilitates project cost savings, in turn, creating several future revenue-generating opportunities. Moreover, the project will enable public power companies and electric cooperatives to reduce the churn rate, boosting customer growth and average revenue per user. ADTRAN had previously collaborated with both FiberRise and KGPCo to extend their Utility Grade Broadband support and avant-garde supply chain and distribution capabilities. This allowed them to support electric utilities to bolster the delivery of network solutions for enhanced connectivity. In fact, FiberRise, ADTRAN and other ecosystem partners had assisted a Mississippi-based utility, Prentiss County Electric Power Association, to tap more than 5,000 subscribers in a year. 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 unique service offerings. This will help expand its diverse client base, including business and residential customers amid a transformed fiber landscape. ADTRAN is optimizing its customer, geographic and product diversity momentum as communication service providers scale up their network capabilities. It is well poised to benefit from growing customer engagements across its portfolio of software-defined access, 10G solutions, and G.fast products. This, in turn, enables service providers to reach more customers and expand their competitive edge. Zacks Rank & Stocks to Consider
ADTRAN currently has a Zacks Rank #3 (Hold). You can see
. the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Clearfield, Inc. ( CLFD Quick Quote CLFD - Free Report) is a solid pick in the broader industry, sporting a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has been revised 8.8% upward over the past 60 days. Clearfield delivered a trailing four-quarter earnings surprise of 50.8%, on average. CLFD has rallied 162.4% in the past year. Qualcomm Incorporated ( QCOM Quick Quote QCOM - Free Report) carries a Zacks Rank #2 (Buy). The consensus estimate for current-year earnings has been revised 14.1% upward over the past 60 days. Qualcomm delivered a trailing four-quarter earnings surprise of 11.2%, on average. It has gained 21.5% in the past year. QCOM has a long-term earnings growth expectation of 15.3%. Anterix Inc. ( ATEX Quick Quote ATEX - Free Report) also has a Zacks Rank #2. The Zacks Consensus Estimate for the current year has narrowed from a loss of $2.13 per share to a loss of $2.08 over the past 60 days. Anterix delivered a trailing four-quarter earnings surprise of 3.9%, on average. ATEX has surged 92.3% in the past year.