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ADTRAN (ADTN) to Power Fiber Connectivity in Block Island

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In a concerted effort to augment the broadband connectivity of the remote community of New Shoreham on Block Island, ADTRAN Inc. (ADTN - Free Report) recently inked a definitive agreement with local fiber connectivity provider Sertex Broadband Solutions. The deal will enable Sertex to deploy ADTRAN’s Mosaic One and Total Access 5000 (TA5000) platform with Combo PON capabilities to deliver low-latency Gigabit connectivity across the island.

As a leading communications service provider, ADTRAN has proved its mettle by leveraging its state-of-the-art networking solutions to accelerate deployments while aiding businesses and households to fulfill their rising connectivity demands on the back of a streamlined infrastructure, one such solution being Mosaic One. This cloud-based network optimization platform manages broadband access and connected home solutions to proactively solve service issues and boost subscriber experience.

Collating and analyzing data from the broadband network gateway and the in-home network, Mosaic One simplifies network operations and helps troubleshoot issues. Integrating a rich set of data visualization and optimization tools, it utilizes an open, multi-vendor architecture to streamline complex processes. It offers AI-driven insights that swiftly detect at-risk connections and mitigate service interruptions. Mosaic One provides advanced tools to assess bandwidth capacity and identify the drawbacks within the network through automation for higher revenue generation.

With a pure Ethernet core, the TA5000 platform supports both legacy and emerging service interfaces over copper and fiber. It supports even the most bandwidth-intensive applications and provides a scalable and cost-optimized aggregation point in the network, with interfaces ranging from DS1 to 10 and 20 Gigabit Ethernet.

Riding on such improved network capabilities, Sertex is likely to offer high-speed broadband connectivity to residents and tourists across Block Island, which is located approximately 9 miles (14 km) south of mainland Rhode Island. The island is coterminous with the town of New Shoreham and is part of Rhode Island's Washington County.

The availability of reliable and high-speed Internet far from the mainland is expected to be a boon for seasonal visitors and local inhabitants. Successful deployment of ADTRAN solutions will greatly enhance digital infrastructure in the region. Moreover, it will also open up numerous opportunities in the sphere of business, health care and education, and accelerate economic development.

ADTRAN continues to benefit from solid demand trends of its network solutions, driven by the accelerated expansion of fiber-to-the-home networks, upgrades to in-home Wi-Fi connectivity and the adoption of cloud-based automation tools. The company’s end-to-end solutions simplify the deployment of fiber-based broadband services and provide a better customer experience.

It is focused on being a top global supplier of access infrastructure and related value-added solutions from the Cloud Edge to the Subscriber Edge through a broad portfolio of flexible hardware and software network solutions. These products enable a seamless transition to the fully converged, scalable, highly automated, cloud-controlled voice, data, Internet and video networks of the future.

ADTRAN expects solid traction in its domestic markets for ultra-broadband and fiber-to-the-home solutions, along with Software-Defined access and Ethernet passive optical network solutions. The company also anticipates a pickup in capital spending in Tier-1, Tier-2 and regional service provider market segments. ADTRAN’s global leadership in software-defined access is likely to ensure a steady stream of revenues as it helps clients reduce costs and accelerate service delivery and deployment.

The stock has lost 59.1% in the past year against the industry’s growth of 30.9%.

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ADTRAN presently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Picks

Arista Networks, Inc. (ANET - Free Report) , carrying a Zacks Rank #2 (Buy), is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 18.7% and delivered an earnings surprise of 12.8%, on average, in the trailing four quarters.

It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. Arista is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.

Ubiquiti Inc. (UI - Free Report) , carrying a Zacks Rank #2, is another key pick in the broader industry. Headquartered in New York, it offers a comprehensive portfolio of networking products and solutions for service providers and enterprises at disruptive prices.

Ubiquiti boasts a proprietary network communication platform that is well-equipped to meet end-market customer needs. In addition, it is committed to reducing operational costs by using a self-sustaining mechanism for rapid product support and dissemination of information by leveraging the strength of the Ubiquiti Community.

Motorola Solutions, Inc. (MSI - Free Report) , carrying a Zacks Rank #2, delivered an earnings surprise of 5.62%, on average, in the trailing four quarters. In the last reported quarter, it pulled off an earnings surprise of 5.58%.

Motorola provides services and solutions to government segments and public safety programs, along with large enterprises and wireless infrastructure service providers. It develops and services analog and digital two-way radio, voice and data communications products and systems for private networks, wireless broadband systems and end-to-end enterprise mobility solutions to a wide range of enterprise markets.

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