Zacks_Analysts' Blog : ADC Telecommunications Wins Contract - Analyst Blog

ADC Telecommunications Inc. (ADCT) recently won a contract from Halstad Telephone Co. to provide fiber connectivity and management solutions for Halstad’s FTTP (fiber-to-the-premises) network.  The network deployment is expected to be completed by mid-2011 and will support residential and business data connectivity to 2,500 locations within Halstad’s network. Halstad received $11.7 million under the American Recovery and Reinvestment Act of 2009 that encourages telecom operators to apply for grants, loans and guarantees to assist them in catering to un-served and under-served communities for broadband access.

The Broadband Stimulus Program has received significant acceptance among rural telecom carriers. ADC Telecommunications is assisting rural telecom service providers in preparing their applications for the Broadband Stimulus funds through the Rural Utilities Service (RUS) program. The company has formed a Rural Carrier User Group that will co-ordinate with several carriers, broadband consultants, and engineering firms to exchange information and develop new ideas for emerging FTTP deployments.

ADC Telecommunications is a leading connectivity solutions provider for copper, fiber, and wireless network. We expect the company to benefit from the rural broadband thrust as increased spending by carriers for the fiber-based network and wireless network will boost demand for connectivity solutions especially in the local loop areas. ADC Telecommunications’ RUS-listed product portfolio includes OmniReach3000 Fiber Distribution Hub cabinet, OmniReach Multiport Service Terminals, fiber-hardened drop cables, FiberGuide Optical Raceway system, and OMX600 Optical Distribution Frame.

On July 12, 2010, Tyco Electronics Ltd. (TEL) and ADC Telecommunications jointly announced that they have entered an agreement under which Tyco Electronics will acquire ADC Telecommunications for a consideration of $1.25 billion. The deal after complying with closing conditions and regulatory approval is expected to be completed by end 2010.