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Ciena (CIEN), Colt Finalize 600G Wavelength Live Network Trial

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Ciena Corporation CIEN recently collaborated with a telecommunications service provider — Colt Technology Services — to successfully conclude a trial of transporting 600G wavelengths for a seamless network infrastructure. The test was made possible with Ciena’s WaveLogic 5 Extreme (WL5e) technology. In addition to WL5e, Colt capitalized on Viavi Solutions Inc.’s VIAV avant-garde solutions, namely — MTS-6000AOSA-610 and ONA-1000A.

Markedly, the landmark trial entitles Colt to be the sole provider with the potential to transport 600G connectivity via a long-haul live network in Japan. Of late, service providers are transitioning toward a more adaptive network that harnesses state-of-the-art technological innovation for high-bandwidth services while catering to dynamic customer preferences with simplified operations, especially in stressful times of the COVID-19 pandemic. Hence, the latest move is expected to be highly advantageous for Colt.

With more than two decades of experience, Colt specializes in the delivery of a streamlined global network and voice services. Some of the services include cybersecurity, optical, business Internet and ethernet. Counted as one of the most financially sound companies in the industry, Colt provides superior bandwidth to wholesale and enterprise customers based in the United States, Europe and Asia. The company is known as an expert in Network Functions Virtualization and Software Defined Networks.

Colt digitizes organizations on the back of a purpose-built, cloud-integrated network — Colt IQ Network. It has been specifically designed to aid customers with avant-garde optical solutions supported by ultra-high bandwidth solutions. Further, the network connects more than 900 data centers and provides high-speed connectivity at competitive prices. Interestingly, the latest collaboration took place after Colt completed a live network pilot in December 2020 to establish 400G optical connectivity, which is now expected to get commercially deployed in the second half of this year.

As part of the alliance, the recent network trial took place between two Colt data centers, wherein Ciena’s WL5e incorporated programmability and scalability in the Colt IQ Network. Markedly, the WL5e is the fifth generation of coherent optical solutions that enables deployment of optical networking with a programmable capacity ranging from 200G to 800G. This maximizes operational efficiencies and encourages cost savings and service agility in long haul infrastructure.

Moreover, the innovative solution helps network providers streamline their networking infrastructure to deliver data-heavy bandwidth services and manage exponential traffic growth. That said, the Hanover, MD-based company is likely to be an ideal partner for Colt to accelerate network transformation and enable its clients to stay ahead of the curve with its industry-leading portfolio of intelligent optical networking solutions supported by better implementation capabilities.

Ciena is confident about the business model and is expected to benefit from growing demand for packet-optical transport and switching products, as well as service management software. It is investing in the data and optical fiber market to capitalize on the tremendous growth opportunities offered by bandwidth demand from network service providers, while boosting the Packet Networking portfolio to capitalize on 5G.

Backed by its technology leadership, the company is focused on the expansion of Web Scale IT Architecture in the enterprise market by launching products like chipsets, metro architecture and mobile backhaul solutions. The demand drivers of Ciena’s business, including increased network traffic and the adoption of cloud architectures, remain strong. The company has the largest optical R&D investment capacity in the industry, which enables it to deliver innovation with the best time to market.

Ciena’s shares have returned 3.9% compared with the industry’s growth of 4% in the past three months.

The stock currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader industry include Aviat Networks, Inc. AVNW and Ubiquiti Inc. UI, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Aviat Networks delivered a trailing four-quarter earnings surprise of 61.7%, on average.

Ubiquiti delivered a trailing four-quarter earnings surprise of 37.1%, on average.

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Ciena Corporation (CIEN) : Free Stock Analysis Report

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Viavi Solutions Inc. (VIAV) : Free Stock Analysis Report

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