Adtran confirms compliance with final BABA ruling and continues US investment
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Insights
The recent announcement by Adtran regarding its preparedness to support the Broadband Equity Access and Deployment (BEAD) program under the Build America, Buy America (BABA) rule is a significant development in the telecommunications sector. This initiative is part of a broader federal effort to bridge the digital divide in the United States, particularly in underserved areas. The policy implications of this announcement are substantial, as it signals a commitment to not only enhance broadband access but also to adhere to mandates for domestically produced equipment, which could have ripple effects on the supply chain and manufacturing within the country.
From a policy perspective, Adtran's alignment with the BABA ruling exemplifies a proactive approach to compliance with federal requirements. This readiness to supply BABA-compliant products such as OLTs, cabinets, ONTs and pluggable optics positions the company to potentially secure a significant portion of the $42.5 billion allocated for grants under the BEAD program. The emphasis on US-based production could stimulate local economies and create high-quality jobs, reinforcing the government's objectives of fostering economic growth and digital inclusivity.
Adtran's strategic positioning to offer BABA-compliant fiber access solutions is a calculated move that could enhance its competitive edge in the telecommunications industry. By ensuring their products meet the criteria for the BEAD program, Adtran is not only ready to contribute to the expansion of high-speed broadband infrastructure but is also likely to benefit from the substantial federal investment in this area. The company's three-decade history of US-based manufacturing and its comprehensive range of products showcase its capability to meet the demand that the BEAD program will generate.
It is important to note that the certification of BABA-compliant products by the National Telecommunication and Information Administration (NTIA) will be a critical factor in determining the success of vendors like Adtran in the market. The company's offerings, which will be showcased on the NTIA’s certification website, must be rigorously evaluated to ensure they meet the high standards required for deployment in the BEAD program. The potential impact on Adtran's market share and financial performance will be closely watched by industry stakeholders as the BEAD program progresses.
The BEAD program's focus on connecting underserved homes to high-speed broadband is poised to have a transformative impact on economic development, particularly in smaller US cities and rural areas. Adtran's readiness to provide BABA-compliant solutions is a testament to the potential economic benefits that can be realized through such federal programs. By advancing equitable broadband access, the BEAD program is expected to support education, telehealth and foster innovation, which are key drivers of economic prosperity.
Moreover, the emphasis on domestic manufacturing in compliance with the BABA rule could lead to a resurgence in American manufacturing capabilities, potentially reducing dependency on foreign supply chains. This could have long-term benefits for the national economy, including increased self-sufficiency and resilience. Adtran's role in this initiative, given its manufacturing expertise and innovation legacy, may serve as a model for other companies looking to capitalize on similar government-funded opportunities.
News summary:
- Adtran welcomes final Build America, Buy America ruling and stands prepared to help BEAD recipients close America’s digital divide
- Capitalizing on its 30-year history of US-based manufacturing, Adtran leads the market with BABA-compliant fiber access solutions
- BEAD recipients will benefit from Adtran’s comprehensive range of BABA-compliant OLTs, cabinets, ONTs and pluggable optics
Robert Conger, GM of software platforms and strategy at Adtran (Photo: Business Wire)
“We welcome the clarity of the final BABA ruling, enabling us to align our solutions with federal requirements and ensure our readiness to support the BEAD program in closing America’s digital divide. As we continue to align our efforts with the program’s objectives, we’re looking forward to the National Telecommunication and Information Administration (NTIA) providing the certification process and website details. This step is crucial for operators to design their BEAD networks with confidence, ensuring they can leverage our BABA-compliant solutions and accelerate the deployment of high-speed broadband infrastructure across the nation,” said Robert Conger, GM of software platforms and strategy at Adtran. “The BEAD program is improving access to key digital services and driving economic growth while also empowering communities by generating high-quality jobs. At Adtran, we have a longstanding tradition of harnessing home-grown innovation and building on American soil. That’s why our support for the BABA Act isn’t a new direction for us — it’s a reaffirmation of our legacy.”
With over three decades of manufacturing expertise in
“Fiber broadband has the power to transform society by unlocking economic growth, tackling poverty and sparking innovation. Yet, despite its potential, many smaller US cities – particularly those with fewer than 10,000 households – still face a significant digital divide. The BEAD program is addressing this challenge, aiming to enhance access to digital services and drive economic progress. Adtran’s readiness with BEAD-compliant fiber solutions is commendable, as well as their longstanding dedication to American innovation and manufacturing,” commented Gary Bolton, president and CEO of the Fiber Broadband Association. “By supporting BABA, companies like Adtran are helping create a digitally inclusive nation where universal broadband access is a reality for all.”
More information on the BABA ruling and how Adtran is ready to help customers is available in this video.
About Adtran
ADTRAN Holdings, Inc. (NASDAQ: ADTN and FSE: QH9) is the parent company of Adtran, Inc., a leading global provider of open, disaggregated networking and communications solutions that enable voice, data, video and internet communications across any network infrastructure. From the cloud edge to the subscriber edge, Adtran empowers communications service providers around the world to manage and scale services that connect people, places and things. Adtran solutions are used by service providers, private enterprises, government organizations and millions of individual users worldwide. ADTRAN Holdings, Inc. is also the largest shareholder of Adtran Networks SE, formerly ADVA Optical Networking SE. Find more at Adtran, LinkedIn and X.
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ADTRAN Holdings, Inc.
www.adtran.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20240223485580/en/
For media
Gareth Spence
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For investors
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investor@adtran.com
Source: ADTRAN Holdings, Inc.
FAQ
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