ADTRAN, Canby Telcom Team Up to Provide Gigabit Services - Analyst Blog

By Zacks Equity Research,

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As part of its community benefit program, ADTRAN Inc. ( ADTN ) will provide infrastructure to Canby Telcom to roll out Gigabit services in Canby, OR.

ADTRAN's highly advanced Fiber-to-the-Home (FTTH) technology will enable Canby Telecom to transform the town into a high-tech Gigabit city, in turn, attracting large organization to set up their offices in the vicinity.

Canby Telecom was the first carrier to utilize ADTRAN's advanced product Total Access 5004 (a part of Gigabit family) to deploy highly advanced Gigabit services to more than 2,500 local residents and businesses organizations. Roll-out of such high-end technology will ensure speedy Internet and better cloud computing and video streaming facilities for large companies. This will not only benefit existing firms in the city, but also lure new takers to the developing city, thus increasing employment and economic growth opportunities in the area.

On ADTRAN's part, successful implementation of its Gigabit product will not only garner huge demand but will also boost the company's top line going forward.

Meanwhile, the company continues to perform well owing to strong contributions from the U.S., Europe, the Middle East, Africa and Latin America. ADTRAN has stabilized its businesses with Tier 1 carriers and has also won contracts from Tier 2 and Tier 3 carriers. We expect the company to benefit from market share gains, strong growth of core products, solid international sales and growing service revenues.  

Within Broadband Access, ADTRAN is positioned to benefit from the continued strong momentum of TA 5000 and FTTN platforms owing to the network upgrade to Ethernet mostly by Tier 2 and Tier 3 carriers as well as higher broadband stimulus.

Inter-networking is expected to benefit from an increase in dealer base, aiding market share gains, new products supporting unified communications, an amplified distribution channel and improving end-market demand.

ADTRAN currently carries a Zacks Rank #4 (Sell).

Other Stocks to Consider

Better-performing stocks in this industry that warrant a look are CommScope Holding Company, Inc. ( COMM ), Ericsson ( ERIC ) and DragonWave Inc. ( DRWI ). CommScope currently sports a Zacks Rank #1 (Strong Buy) while Ericsson and Dragon have a Zacks Rank #2 (Buy).

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ADTRAN INC (ADTN): Free Stock Analysis Report

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COMMSCOPE HLDG (COMM): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: ADTN , ERIC , DRWI , COMM

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