1. Enabling the Future Network

2. ADTRAN at a Glance Broad Portfolio of Solutions
More than 1,700 products
2011 Revenues - $717 million
Carrier Division - $569 million
Enterprise Division - $148 million
Strong Financials
Over 20 years of continuous profitability
1,750 Employees
Global Presence
Headquartered in Huntsville, AL
Development centers:
Phoenix, AZ
Ottawa, Canada
Mountain View, CA
Hyderabad, India
Boston, MA
NSN BBA Acquisition
ADTRAN Headquarters, Huntsville, AL
NASDAQ: ADTN 2 2

3. Global Market Trends Broadband / Ethernet Access Mobility
Exponential growth in bandwidth access
IP traffic will increase 4x over next five years
VoIP proven and continues significant growth
Mobility
Mobile data demand growing 15-25x over next three years
Users have growing number of end-points
3 to 5 devices per person
Smartphone, iPad, laptop, machine-to-machine
Cloud Services & Applications
Shift to cloud computing drives demand for Enterprise and SMB connectivity
Virtualization
Applications running on virtual machines increase efficiency, reduce space and carbon footprint 3

4. New Devices and Applications
New Mobile Devices
iPad, tablets, smart phones, etc..
New Applications
Video, gaming, etc..
Cloud services
Voice over Wi-Fi
Major Usage Changes
Netflix is now 30% of Internet traffic
Over 50% of the 800M Facebook users are active daily
Over 350M users access Facebook on their mobile device
Two-way video chat
Skype
Apple’s Facetime

5. Mobility Demand is Exploding
5B Mobile Phones Globally
Smart phones are Pervasive
True Mobility is no Longer a Convenience
Voice over Wi-Fi, Facetime
New Devices Rely on Wireless Connectivity
iPads
Mobile Data Traffic is Growing Exponentially
Wi-Fi Data Offload to Fixed Network is Necessary
Source: FCC

6. Cloud is the Future
Cloud services level the playing field for businesses of all sizes and deliver global scalability
IDC estimates the market for public cloud products and services will grow to $56 billion by 2014
Amazon’s S3 Cloud Storage Service skyrocketed from 262 billion in 2010 to over 566 billion in 2011
Over 370,000 requests per second
Small business public cloud computing spending is estimated to reach $6 billion by 2014
(Source: In-Stat - December 2010)

7. ADTRAN Areas of Focus Broadest Portfolio of Broadband Solutions
Fiber-to-the-Home/Node/Curb, Ultra Broadband
Mobile Infrastructure
Fixed access from exchange to cell tower
Optical access, Carrier Ethernet access, Broadband access
Cloud Connectivity
Enterprise converged access
Hosted service provider solutions
Carrier Ethernet, broadband connectivity
Virtualization enables unlimited scalability
Broadband
Mobility
Cloud

8. ADTRAN – Complete Connectivity
Exchange
Provider’s Access Infrastructure
Business & Residential Customers 8

9. ADTRAN – Complete Connectivity
Broadband Access
Industry’s most widely adopted access platform
Ethernet Aggregation
Cost-effective for high-density Ethernet deployment
Optical Access
Specifically designed for the access edge
Redefining the packet optical edge
Exchange 9

10. ADTRAN – Complete Connectivity
Mobile Backhaul
Efficient fiber Ethernet services
Business Ethernet Services
Full range of service rates and service reach
Business Service Migration
Extend product lifecycle
Provider’s Access Infrastructure 10

11. ADTRAN – Complete Connectivity
Cloud Connectivity
Industry leadership in service provider bundles
Enterprise Communications
Solutions which enable businesses to become more capable and efficient
Virtual Mobility
Complete end-point freedom throughout the Enterprise
Residential
Deliver Ultra Broadband for premium services
Business & Residential Customers 11

12. Core Product Performance
48% growth
65% growth
36% growth
25%growth
ADTRAN Core Products
Solid performance in Core Products
Broadband Access
Optical Access
Internetworking

13. Broadband Access Opportunity
Market Characteristics
Carrier consolidation
Releases investment
Competitive push by non-wireless carriers
Government mandates US
Other regions
Over the top video
Continual bandwidth upgrades
The demand for availability and greater capacity Broadband connectivity is pervasive across the globe. Carrier consolidation has release significant CapEx investment for networks that had previously been under invested as well to meet State PUC and FCC merger obligations. Examples include Frontier’s acquisition of 5M lines from Verizon and CenturyLink’s acquisition of Qwest. We also see strong market competition from fixed line carriers, cable and wireless carriers to deliver greater speed and availability.
Countries around the world have implemented National Broadband Plans and aspirational speed and broadband availability targets to increase global competitiveness and for economic development. In the U.S., the government launched a $7.2B Broadband Stimulus program that is just starting to result in CapEx spending. The FCC also implemented a National Broadband Plan with the goal of delivering 100Mbps to 100M households by As part of the National Broadband Plan, the FCC issued an Order in late 2011 to reform the voice-based $4.5B/yr Universal Service Fund (high cost fund) to be targeted to broadband, which will also fuel CapEx investment for broadband infrastructure.
End-user demand and high capacity applications continue to drive continuous upgrades for greater availability and more bandwidth capacity.
According to Infonetics, ADTRAN is the market leader in the U.S. in MSAP (Multi-Service Access Platforms (TA 5000)) and in DSL. ADTRAN also experienced 500% growth in Fiber To The Home deployments in ADTRAN has one of the industry’s broadest portfolios of broadband access solutions which include our highly differentiated Ultra Broadband solutions. ADTRAN’s Ultra Broadband solutions deliver deep fiber to sealed and maintenance-free Outside Plant nodes that cost effectively deliver ultra-high broadband performance for the delivery of premium internet and high-bandwidth video services.
Ultra Broadband
Premium internet and video to more customers at the lowest TCO
Fiber to the Home
Ultra flexible, high capacity deep fiber solutions

14. Core Product Growth – Broadband Access
Proven market share growth ( )
#1 DSL & MSAP in NA
#3 DSL Globally
#4 MSAP Globally
Increasing demand for premium internet, video delivery and business services
Leveraging healthy forecast for high-speed services globally
Source is Infonetics report called “2011-Infonetics-3Q11-PON-FTTH-DSL-Mkt-Fcst-Updated ”
In the latest reported marketshare (3Q11), ADTRAN has moved into the #1 marketshare leader for DSL and MSAP (Multi-Service Access Platforms) according to Infonetics Research. ADTRAN also hold the #3 global position in DSL and the #4 global position in MSAPs
Source: Infonetics

15. Internetworking Opportunity
Market Characteristics
Cloud Connectivity
Market Leadership in public and private cloud connectivity
Rise of Cloud Services
Public & Private
More Communications Enabled Business Processes
Unified Communications
Explosion of Mobile Devices
End-user (not IT) dictates the device
Demand for bandwidth
Enterprise Communications
Premises-based solutions enabling business productivity
Businesses around the world are rapidly moving to public and private Cloud-based services. ADTRAN is the market leader in Cloud Connectivity. In the U.S., ADTRAN cloud connectivity solutions are included in 85% of the Tier 1 Service Provider bundled business services and ADTRAN maintains 72% to 100% market share (internal estimates) in the bundles that we participate in. The follow are the Bundled Business Services that ADTRAN participates in and a list of the ADTRAN solutions included in those bundles:
Bundled Business Services
Hosted Centrex, Hosted UC, Hosted IP Centrex, Hosted WLAN, Business Internet Access, Business Ethernet (on ramp MPLS (IDE) and IDA), Private Network (MPLS), SIP Trunking, Managed Security, Managed UC and SIP Trunking with PBX bundle
Bundled Business Service Solutions
IP Business Gateways, Access Routers, Ethernet Switches, Unified Communications, Unified Threat Management
In addition to market leadership in Service Provider business services, ADTRAN provides a strong offering of Enterprise Communication solutions. Businesses around the world have been forces to cut back on staff and resources putting a major demand on being able to do more with less. ADTRAN’s line of Enterprise Communications solutions are premises-based solutions that enable businesses to be more productive and more capable through communications enabled businesses processes with Unified Communications, efficient LAN infrastructure solutions and highly scable wireless LAN solutions.
With the explosion of Mobile Devices such as smart phones and tablets, the end-user now is in control of device selection, the number devices simultaneously used and how the applications that are used (video, voice over WiFi, video conferencing, etc). This puts significant demand on the IT department to deliver massive wireless bandwidth, scalability for many devices per users and enable persistent IP sessions across the enterprise campus. Users demand end-point freedom across the enterprise. ADTRAN’s initial Virtual Mobility solution is the Bluesocket Virtual Wireless LAN which is the Industry’s first fully cloud-based wireless LAN solution.
Virtual Mobility
End point freedom across the Enterprise

16. Core Product Growth – Internetworking
Proven market share growth ( )
#1 Cloud Connectivity
#1 SIP Trunking
#2 Access Routers
Market Leadership in Carrier Bundled Business Services
Highly Differentiated Virtual Wireless LAN and Unified Communications
#1 Cloud Connectivity - ADTRAN is in 85% of US Tier 1 service provider bundles and maintains 72% to 100% market share (based on Svc Provider reporting to ADTRAN)
Frost & Sullivan (2011) reported that ADTRAN is #1 in SIP Trunking (for Converged Access (ie IP Business Gateways)) but most of ADTRAN’s revenue is in North America. Infonectics reports that ADTRAN maintains a #2 market share position in access routers.
Source: Infonetics

17. Optical Access Opportunity
Market Characteristics
Massive Traffic Growth
Limitless Optical Capacity
Simplified Operations
Optical Ethernet
5B Mobile Devices Worldwide
Computer on your hip
Mobile Broadband
Exponential Bandwidth Requirements
Service Providers are under pressure to deliver more and more bandwidth to consumers, businesses and mobile users while simplifying their work-flow processes and network architecture. These are reflected in the mobile infrastructure upgrades and major LTE rollouts which began in 2011 and will continue through Service providers rolling out fiber-based telecom networks for mobile broadband need solutions that can adapt quickly to not only this near-term opportunity but as well to emerging customer demands from business services delivery and broadband services backhaul which will require optical access and aggregation.
In 2011, ADTRAN moved from Optical Access to Optical Networking with the launch of the Optical Networking Edge (ONE) in response to the massive traffic growth at the edge of the network. New functionality such as ROADM (reconfigurable Add / Drop multiplexer) and OTN (Optical Transport Network) were introduced from the Total Access 5000 in order to reduce network complexity using Packet Optical, blurring the boundaries between access aggregation and transport. ONE is unique because it right-sizes Packet Optical technology to operate at the edge of the network – removing bandwidth bottlenecks, reducing network complexity to accelerate services revenue.
ADTRAN provides a full portfolio of Optical Access solutions that includes Opti-6100 SONET/SDH MSPP (service provisioning platform), the Total Access 5000-based Optical Ethernet access and aggregation components, QDFR (quad fiber) T1 services over fiber and the NetVanta 8044M Cell site Gateway.
Optical
Networking Edge
Right-sizing Packet Optical to reduce complexity at the network edge.
Mobile Backhaul
Enabling the promise of Mobile Broadband

18. Core Product Growth – Optical Access
Expanding Optical Addressable Market
SONET  WDM
Access & Transport
U.S.  Global
Growing Market Share
Highly Differentiated Solutions - ONE
Reducing Network Complexity
Accelerating Services Delivery
Pull-Thru Revenue
ONE differentiation pulls through sales in Broadband Access
Source is Infonetics report called “2011-Infonetics-3Q11-PON-FTTH-DSL-Mkt-Fcst-Updated ”
ADTRAN is expanding its Optical Addressable Market with the introduction of the Optical Networking Edge (ONE) solution that was introduced in The solution “right sizes” Packet Optical technology to address the bottle necks of Access Aggregation. ADTRAN’s Optical Addressable market now goes beyond SONET Optical Access addressed by the OPTI-6100 with the ONE solutions, addressing Packet Optical at the access edge. In addition to addressing WDM, ADTRAN expands beyond just Access to also include Optical Transport. The ONE also enables ADTRAN’s Addressable Market to expand beyond the U.S. (SONET market) to include the Global Packet Optical market.
The ONE solution also provides significant access aggregation differentiation for our TA 5000 for Broadband Access deployments, pulling through incremental Broadband Access revenue.
Source: Infonetics

19. International Growth Progress
2011 Revenue Contribution
International
International Growth
Domestic
165%
Growth
215%
Growth
2010
2011
2010
2011
Q over Q4 2010

20. Planned Acquisition of NSN’s BBA Business
ADTRAN announced that it plans to acquire Nokia Siemens Networks Broadband Access (BBA) business
NSN BBA business includes
MSAN, GPON, DSLAM and related Network Management Solutions and associated IPR
Incumbent customer base of carriers across >20 countries in Europe, Middle East, Africa, India, Russia and Asia
Strong team of sales, service, support, and engineering
Acquisition is anticipated to close by the end of April 2012
Advances ADTRAN’s Top Tier Global Supplier status in fixed broadband access
EPS neutral for first full year, accretive thereafter

21. Purpose of Acquisition
Accelerates strategic plan for global growth
Incumbent supplier to top Carriers across the globe, including DT, Bezeq, Sunrise and others
Regional Diversity
Complementary product portfolios
Strong global MSAN Solutions
ADTRAN adds Carrier Ethernet, Ethernet Business Services, Mobile Backhaul, Enterprise solutions…
NSN BBA adds MPLS, H.248, ETSI voice, global services…
Combined portfolios deliver compelling global roadmap
Strengthens Engineering and Services resources to focus on global accounts
Provides word-class sales, services and customer support

22. ADTRAN Customer Focus EUROPE NORTH AMERICA ASIA AFRICA SOUTH AMERICA
AUSTRALIA
ANTARCTICA

23. NSN BBA Customer Focus EUROPE NORTH AMERICA ASIA AFRICA SOUTH AMERICA
AUSTRALIA
ANTARCTICA

24. Combined Customer Focus
EUROPE
NORTH AMERICA
ASIA
AFRICA
SOUTH AMERICA
AUSTRALIA
ANTARCTICA

25. Top Tier Global MSAP Ranking – Ports
Global – MSAP Category (Port Shipments)
Source: Infonetics Q Report

26. Top Tier Global DSL Ranking – Revenue
Global – DSL Category (Revenue)
Source: Infonetics Q Report

27. Annual Revenue and EPS
EPS:

28. Return on Invested Capital and Economic Value Added Spread (trailing twelve months)
*Adjusted for nonrecurring tax items.
Information derived from Bloomberg as of January 1, 2012

29. Highly Differentiated Solutions That Deliver Immediate Business Results
Large Growth Markets
Strong Company
Solid Performance
Global Presence 29