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Adtran moves for NSN's fixed broadband business

12 January 2012
 
Adtran has announced that it plans to buy the fixed-line broadband access business of Nokia Siemens Networks (NSN). 
 
 The value of the deal, which includes the associated professional services and network management solutions, is undisclosed. The US company will gain up to 400 staff as well as NSN's intellectual property, technology and existing customers. The deal is expected to be completed in April (see NSN refocuses on mobile broadband and services).
 
According to Erik Keith, Current Analysis' principal analyst for fixed access infrastructure, the deal buys Adtran a place in the top five DSL vendors globally."Adtran is well-poised to benefit from NSN’s exit strategy, at an extremely low-risk cost of entry," said Keith in an analysis piece.
 
Acquiring NSN will help Adtran's stated goal of growing its global presence, and in particular in Europe. The deal will also allow Adtran's solutions to be incorporated by NSN as part of its customer offerings.
 
Morgan Stanley Research believes Adtran paid some US $15M (€11.8M) for a unit that will generate $140M-180M in estimated revenues in 2012. However, in its report it warns that Adtran will need to improve the unit's gross margin from an estimated 30% to at least 40% in order to break even. 
 
Meanwhile, Adtran has added a compact ROADM system-on-a-blade, a multi-service Optical Transport Network (OTN) Switchponder and tunable pluggable optics to enhance its optical networking edge offerings.   Integrated as part of Adtran's Total Access 5000 platform, service delivery and transport network installation will now be simplified using remote provisioning and performance monitoring tools, says the company.
 
By Roy Rubenstein