Adtran Looks Overseas

For much of its history, Adtran Inc. (Nasdaq: ADTN) has been predominantly a North American vendor with less than 10 percent of its revenues coming from overseas markets. But over the past year or so, the company has begun to shift its focus more toward foreign markets particularly with its new VDSL2 version of the Total Access 1100 that it announced at NXTcomm. (See Adtran Builds in VDSL2.)

In North America, many carriers are looking at pushing fiber-to-the-premises (FTTP) buildouts with AT&T being the only carrier doing a large scale fiber-to-the-node (FTTN) project that would incorporate a lot of VDSL in the last mile. But in overseas markets particularly among European carriers such as Orange (NYSE: FTE), VDSL is a very widely used technology.

Because of that, Adtran is looking to get a bigger piece of that foreign market that it traditionally has had. “We see that as an opportunity for us there for sure,” Kevin Morgan, direct of marketing for Adtran’s carrier networks division, said to Light Reading this week. “Mainly because it is an agreed upon standardized technology. It’s not longer the T1 vs. the E1 standards. It’s something that can be used anywhere in the world”

The strategy to put more emphasis on foreign markets has been in the works for some time now. “A lot of our emphasis in the last year or so has been basically positioning our outside plan DSLAM product overseas,” said Morgan. “In the emerging markets, there’s really a feeling as well with our Ethernet over TDM products. That’s a popular technology outside of the U.S. that we’re going to carry.”

But Adtran isn’t forgetting its North American roots with its 1100 series product and thinks FTTN will be a big part of the future over here. “Every major U.S. carrier deploys this solution,” said Robert Conger, product manager for the carrier networks division. “Most of it has been with copper, but over the last year it’s evolved to more FTTN and we expect that trend to continue.”

Adtran has sold over 45,000 units of the 1100 series in the past three years. It recently also made enhancements to its Total Access 5000 series as well, adding GPON capability. (See Adtran Adds GPON.)

— Raymond McConville, Reporter, Light Reading

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