No surprise here. Huawei is not going to win the contract with Level 3. Infinera and Ciena are cited as among the potential bidders. Considering Level 3's history with Infinera, I say Infinera's got the upper hand. Using the $200 million quoted in the article, this was worth $50 million a year. Assuming it's the same sort of amount (conservative ?), I would take $50 million in additional revenues for Infinera for each of the next few years.
"Huawei Technologies Co. has emerged as the world’s second-largest maker of networking gear thanks to growth in China, Europe and emerging markets. The U.S. business is a different story.
Just $1.3 billion of the Shenzhen, southern China-based company’s $35 billion in 2012 sales came from America. Now, amid rising congressional concerns about Chinese government- sanctioned hacking, Huawei may lose one of its most important stateside customers: Level 3 Communications Inc. (LVLT), which runs a broadband network that helps carry traffic for most telecoms.
Level 3 has bought $200 million in optical networking gear from Huawei since 2009, according to an estimate by Erik Suppiger, a JMP Securities LLC analyst. The Broomfield, Colorado-based carrier is soliciting bids for its next three- year order, and Huawei isn’t likely to win, said two people who have spoken with Level 3 about its intentions and weren’t authorized to discuss them publicly.
“There’s no way Level 3 will possibly select Huawei,” said Andrew Schmitt, an analyst for Infonetics Research Inc.
$200M bought from Huawei since 2009 implies all 10G and 40G gear, given that Level3 has been claiming they're still assessing whether to invest into 100G. Hopefully the DTN-X wins out and gets to relegate all this cheap Chinese gear to the backroads of America low traffic routes.