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ADTRAN Partners Zzoomm for Improved UK Fiber Connectivity

Zacks Equity Research

ADTRAN, Inc. ADTN recently announced that it has collaborated with a full fiber network operator — Zzoomm — to deploy its 10G Passive Optical Network (PON) broadband connectivity to residents and businesses across the United Kingdom. The networking equipment maker’s comprehensive 10G solutions offer the much-needed scalability and reliability to ensure a premium broadband service experience for users.

Markedly, 10G XGS Symmetric PON delivers top-notch service quality to network operators, while offering a robust multi-gigabit service structure that meets customers’ burgeoning connectivity demands.

Henley-on-Thames has been selected as the first city in the U.K. for the deployment of full-fiber symmetric residential services with initial speed of up to 2Gbps. Backed by latency-sensitive applications and high-throughput capacity, the technology is expected to power entertainment and education sectors, optimizing user experience with an agile network infrastructure.

The company’s next-gen technology is a community-driven broadband network that enables operational efficiency by converging services from multiple customer segments across a common access network. It offers fiber broadband providers the flexibility to support the symmetrical gigabit-level bandwidth rates, thereby realizing the future of converged residential and business networks to support critical cloud applications, massive IoT, Internet and 5G.

Markedly, the deployment of 10G PON technology is possible primarily due to ADTRAN’s much-acclaimed Total Access 5000 (TA5000) network that provides unrivaled flexibility with the widest range of 10G FTTH products in the market. TA5000 is considered to be an ideal solution for Henley-on-Thames to deploy cost-effective high-bandwidth network services seamlessly.

ADTRAN’s latest move highlights that 10G PON technology is well positioned to optimize its customer, geographic and product diversity momentum as service providers aim to improve speed and augment network capabilities. The company expects the short-term headwinds to gradually diminish with increased customer engagements across its complete portfolio of software-defined access, 10G solutions and G.fast products.

The Huntsville, AL-based network provider intends to become 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. In order to complement the Network Solutions portfolio and enable customers to accelerate time to market, reduce costs and improve customer satisfaction, it offers a complete portfolio of maintenance, turnkey network implementation, maintenance, solutions integration and managed services.

The company’s revenue sources are diverse and well balanced, with contributions from North America, LATAM, Europe, Middle East and Africa, and Pacific Rim regions. Its broad portfolio of best-in-class solutions continues to gain traction with rising number of customers in an expanding range of market segments, which portends well for growth.

ADTRAN has a long-term earnings growth rate of 5%. Driven by a diligent execution of operational strategies, the stock has gained 9.9% compared with its industry’s rise of 7% in the past three months.



Zacks Rank & Stocks to Consider

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

Few better-ranked stocks in the broader industry are SeaChange International, Inc. SEAC, Bandwidth Inc. BAND and Mitek Systems, Inc. MITK. While SeaChange International sports a Zacks Rank #1 (Strong Buy), Bandwidth and Mitek Systems carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

SeaChange International has a long-term earnings growth rate of 10%.

Bandwidth has a long-term earnings growth rate of 13%.

Mitek Systems has a long-term earnings growth rate of 15%.

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