Back to top

Image: Bigstock

ADTRAN Solutions to Upgrade 1&1 Versatel Fiber Network: Stock to Gain?

Read MoreHide Full Article

ADTRAN, Inc. (ADTN - Free Report) recently secured a contract for an undisclosed amount to help modernize the fiber optic network of 1&1 Versatel. Per the deal, ADTRAN FSP 3000 open optical transport technology will be utilized by one of Germany's largest fiber-optic networks to provide comprehensive and tailored telecommunication solutions to users.

The multi-million-euro investment will also witness the deployment of ADTRAN’s ALM fiber monitoring solution that offers real-time network assurance for swift and proactive maintenance responses.

How ADTN Solutions Will Help 1&1 Versatel

ADTRAN FSP 3000 open optical transport technology will help 1&1 Versatel expand its network capacity by facilitating parallel data transmission across multiple wavelengths, each supporting up to 800Gbit/s data speed. The ramp-up of fiber infrastructure across approximately 65,000 kilometers will help enhance high-performance broadband connectivity by connecting long-haul routes to its data centers nationwide.

In addition, ADTRAN’s ALM fiber monitoring solution will help 1&1 Versatel with automated, real-time network oversight, minimizing downtime and ensuring service resilience to cater to the rising digital demands of businesses and public authorities across Germany.

Will ADTN Stock Benefit From the Deployment?

For ADTRAN, the deployment presents an opportunity to showcase its open, scalable technology in a real-world setting. By addressing the unique challenges of fiber optic networks, the company aims to strengthen its position as a leader in fiber access solutions. The deal also underscores its commitment to fostering digital inclusion across Germany, as 1&1 Versatel plans to roll out this technology at more than 135 locations this year, covering approximately 250 individual fiber optic connections across 75 key traffic routes. The collaboration is likely to propel the stock on incremental revenue generation and inducement of similar deals from other carriers in the future.

The stock has gained 8.8% over the past six months compared with the industry’s growth of 13.5%.

Zacks Investment Research
Image Source: Zacks Investment Research

ADTN Zacks Rank & Stock to Consider

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

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Arista Networks, Inc. (ANET - Free Report) , carrying a Zacks Rank #2 (Buy) at present, 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 experiences. Arista has a long-term earnings growth expectation of 17.2% and delivered an earnings surprise of 15%, on average, in the trailing four quarters.

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

AudioCodes Ltd. (AUDC - Free Report) currently carries a Zacks Rank #2. It delivered an earnings surprise of 10.1%, on average, in the trailing four quarters.

Headquartered in Lod, Israel, AudioCodes offers advanced communications software, products and productivity solutions for the digital workplace. It provides a broad range of innovative products, solutions and services that are used by large multi-national enterprises and leading tier-1 operators around the world.

Airgain, Inc. (AIRG - Free Report) currently carries a Zacks Rank #2. It has a long-term earnings growth expectation of 35%.

Headquartered in San Diego, CA, Airgain offers integrated wireless solutions in the form of antenna products. These products are equipped to solve critical connectivity needs in both the design process and the operating environment across the enterprise, automotive and consumer markets. Ideal for original equipment and design manufacturers, vertical markets, chipset vendors, service providers, value-added resellers and software developers worldwide, the customizable antennas from Airgain serve both indoor and outdoor connectivity issues.

Published in