At a time when telcos are inundated with requests to provide crucial connectivity services to support businesses amid the COVID-19 pandemic, the need for an efficient network services provider holds utmost importance. One such company is ADTRAN, Inc. ADTN, which is gaining significant momentum in the global market, thanks to its diverse portfolio of innovative networking solutions, accretive collaborations and back-to-back network deployments.

The Huntsville, AL-based network service provider’s end-to-end solutions simplify the deployment of fiber-based broadband services and provide a better customer experience with differentiated product offerings. ADTRAN operates in two business segments — Network Solutions, and Services and Support. Network Solutions includes hardware and software products. The Services and Support unit include consulting and network implementation, among other services.

Growing Partner Ecosystem Bodes Well

Increasing network deployments are the reason behind ADTRAN’s thriving community of partners. Few days back, it had partnered with Sonic, an Internet Service Provider (ISP), to enhance the latter’s network infrastructure with the deployment of Total Access 5000 10G fiber access platform and Combo PON technology. The deployment has helped the ISP to augment its fiber network in the highly-competitive region of Oakland, CA and expand its market share, while supporting the latest broadband technologies.

ADTRAN also secured multiple partnerships with service providers to deploy its highly-scalable fiber access network in the rural regions of the U.K. It has collaborated with Alncom, Wildanet, and Netomnia. The alliances helped in bridging the digital divide on the back of a cost-effective fiber-to-the-home network, thereby delivering exceptional broadband experiences to customers based in the underserved areas of the European country.

In a landmark move, ADTRAN had inked a definitive agreement to acquire ADVA Optical Networking SE in an all-stock deal. The transaction aims to leverage ADTRAN’s expertise in fiber access, fiber extension and subscriber connectivity solutions with ADVA’s global leadership in metro wavelength division multiplexing, data center interconnect, business ethernet and network synchronization solutions to create a comprehensive portfolio of fiber networking products.

The transaction is expected to be completed in mid-2022, subject to the fulfillment of mandatory closing conditions and other regulatory approvals. The combined company is likely to be renamed ADTRAN Holdings Inc. with its global headquarters in Huntsville, AL, and European headquarters in Munich, Germany. The development is pursuant to an exchange offer of all the outstanding shares of ADVA. Post the completion of the deal, ADTRAN shareholders will own approximately 54% of the combined company with the remainder being owned by ADVA shareholders. The combined entity is expected to generate $52 million in pre-tax annual cost synergies within the first two years of operation, driven by supply chain efficiencies and optimization of resources.

ADTRAN had announced its membership in a Germany-based fiber optic consortium — BUGLAS. The company has been a prominent broadband equipment developer in Germany for a long time. As part of the collaboration, ADTRAN is primarily focused on establishing a streamlined connectivity infrastructure with a superior fiber broadband delivery. It is also supporting alternative networks in the European country to address the accretive demands of high-speed bandwidth driven by sustainable broadband access technology.

Innovation is the Key

ADTRAN’s products and services provide solutions that support fiber- and copper-based infrastructures as well as a growing number of wireless and coax-based solutions. The company’s solutions lower the overall cost to deploy advanced services across a wide range of applications. It has a major role to play when it comes to eliminating digital disparity by deploying high-speed connectivity in rural areas.

A few months back, it had unveiled Total Access 5004 Micro-Cabinet. The avant-garde fiber access platform enables rural, last-mile subscriber reach deployments and drives time-to-market for broadband services delivery. To enhance end-to-end broadband access solutions with advanced software capabilities, ADTRAN extended its avant-garde Mosaic One platform by launching three intelligent applications.

Dubbed Mosaic One Promote, Mosaic One Care and Mosaic One Operate, these offerings are best known for service optimization with the widest gigabit broadband coverage. It monetizes networks by facilitating service providers to unlock new revenue streams and enhance competitiveness to deliver an improved broadband experience.

The company 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. Moreover, ADTRAN expects solid traction in its domestic markets for ultra-broadband and fiber-to-the-home solutions. The company also anticipates a pickup in capital spending in Tier-1, Tier-2 and the regional service provider market segments.

Wrapping Up

Driven by such focused endeavors, ADTRAN is well poised to optimize its customer, regional and product diversity momentum. The company expects to gain from high 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 enables service providers to reach more customers and expand their competitive edge. Also, back-to-back technological collaborations and its strategy to diversify across regions and markets are commendable.

Some prominent players in the broader industry are Viasat, Inc. VSAT, Clearfield, Inc. CLFD, and Wireless Telecom Group, Inc. WTT.

Viasat delivered a trailing four-quarter earnings surprise of 373.3%, on average.

Clearfield pulled off a trailing four-quarter earnings surprise of 49%, on average.

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

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