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ADTRAN Launches Simple Yet Effective Enterprise-Class Wi-Fi

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ADTRAN, Inc. (ADTN - Free Report) recently announced the launch of a simple and easy-to-use enterprise-class Wi-Fi solution for the small business market. The product leverages machine learning technology and cloud-managed IT model to effectively serve this underserved market.

Per the U.S. Census Bureau 2015 Statistics, the total addressable market for micro and small businesses that utilize Wi-Fi includes 5.8 million business entities with a cumulative worth of more than $2.8 billion. These business units often lack the requisite technical expertise to handle any issues related to typical enterprise-class Wi-Fi solutions with limited or no IT staff. Moreover, these Wi-Fi solutions are mostly expensive and complicated to handle for everyday use.

ADTRAN fills this void by uniquely positing the new Wi-Fi product with a simpler, more cost-effective solution. The product is designed to enable service providers optimize their operating expenses and increase average revenue per user. It requires no installation or management of on-premises controller or software and is entirely cloud-managed as access points automatically discover the cloud and download firmware configuration. Effectively priced at about 75% lower than the variants in the market, the product requires no specialized IT setup and offers seamless upgrade to advanced features with flexible deployment options.

ADTRAN 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 customers to transition to the fully converged, scalable, highly automated, cloud-controlled voice, data, Internet and video network of the future.

Shares of ADTRAN have recorded an average return of 15.3% in the past six months, while the industry’s average decline is 8.4%.

Moving into the second half of 2018, ADTRAN expects solid traction in its domestic markets for ultra-broadband and Fiber-To-The-Home solutions along with SD access and EPON solutions. The company also anticipates a pickup in cap 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 cost and accelerate service delivery and deployment.

ADTRAN currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the broader industry include United States Cellular Corporation (USM - Free Report) , AT&T Inc. (T - Free Report) and Windstream Holdings, Inc. (WIN - Free Report) . While United States Cellular sports a Zacks Rank #1 (Strong Buy), AT&T and Windstream carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.    
United States Cellular has long-term earnings growth expectation of 1%. It surpassed earnings estimates thrice in the trailing four quarters, with an average positive surprise of 303.6%.

AT&T has long-term earnings growth expectation of 3.6%. It surpassed earnings estimates twice in the trailing four quarters, with an average positive surprise of 5.9%.        

Windstream surpassed earnings estimates twice in the trailing four quarters, with an average positive surprise of 23.5%.

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