Adtran is entering a joint manufacturing deal with the Arab Organization for Industrialization (AOI,) a large manufacturer controlled by the Egyptian military. AOI assembles tanks and jet aircraft. It produces AK-47's. The company is diversifying into solar energy and communications. A GPON box is much simpler than a supersonic jet; Egypt should have no problem with the manufacture.

Egypt has a strong industrial base that was first developed by Muhammad Ali at the beginning of the 19th century. It was stifled under British colonization until 1952. It exports widely and has respected universities. 

As Chinese wages have gone up, manufacturers have been moving to find lower labor costs. Vietnam has enjoyed a mini-boom. Egypt's nominal per capita income is about midway between Vietnam and China, low enough that wages will be competitive.

For the last two years, FTTH has increased by 20% or more each year.

Spain and France are mostly covered. BT & DT are joining in. The UAE and other Gulf countries have some of the highest FTTH penetrations in the world. Fibre is now the right choice for most new apartment blocks and some older ones as well. Demand is there.

Adtran has been winning fibre contracts around the world, including large ones at the US cablecos. Its GPON and XGS PON are doing well. The expanding Arab market should do well by them. 

ADTRAN to Invest in Egypt to Create a Better Broadband Experience

HUNTSVILLE, Ala.--(AUG 19th, 2019)— ADTRAN, Inc., (NASDAQ:ADTN), a leading provider of next-generation open networking and subscriber experience solutions, today announced an agreement with the Arab Organization for Industrialization (AOI) to work on a joint manufacturing program in Egypt to deliver ADTRAN’s market-leading fiber products for Egypt and the region. A signing ceremony was held today at the AOI headquarters and was attended by executives from both companies, leading network operators, government ministers and industry leaders.

“ADTRAN has consistently delivered superior technology to market that clearly shows unmatched domain experience and a commitment to helping network operators around the world achieve their fiber broadband goals,” said Lt. General Abdul Moneim Al-Tarras, Chairman of the Arab Organization for Industrialization. “This partnership will enable us to create new opportunities for ADTRAN, AOI and our customers as the demand for Gigabit broadband accelerates in our region.”

As part of an initial focus, the team will work on ADTRAN’s fiber access portfolio, including its award-winning XGS-PON, GPON and other SD-Access solutions. AOI is a leading manufacturer in the region and partners with companies in a diverse range of fields including electronics, renewable energy, automotive and aeronautics.

“The technical expertise of the AOI, as well as its experience of working with other technology leaders, make them an ideal partner for ADTRAN in the region,” ADTRAN Senior Vice President of Global Operations Ron Centis said. “Network operators around the world are rapidly moving to Gigabit and 10G as the demand from commercial, industrial and residential customers increases to support business and consumer applications and services. We look forward to serving this growing market.”