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Ciena (CIEN) WaveLogic Ai to Revamp Lumea Telco Infrastructure

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Ciena Corporation CIEN partnered with Lumea, an Australia-based energy and telecommunications services provider, to revamp the latter’s telco infrastructure with avant-garde technology. Per the collaboration, Lumea will capitalize on Ciena’s WaveLogic Ai technology, which will enable it to deliver high-speed 100G+ wavelength services between its key data centers.

Notably, at a time when the majority of the operators are migrating toward a more adaptive and sustainable network to boost the global digital ecosystem, the latest move comes as a boon. It will not only significantly increase Lumea’s network capacity to support emerging bandwidth-intensive applications but also bridge the digital divide by driving innovation and making new-age technology accessible to more communities.

Given the impressive record of Ciena’s back-to-back cable network deployment wins with multiple telcos, the recent network modernization initiative is likely to make the Hanover, MD-based company well-positioned to benefit from diversification across customer segments and regions on its technology leadership. Markedly, the partnership aims to empower new technologies such as 5G transmission and address today’s networking challenges on the back of a streamlined infrastructure.

As one of Australia’s most diverse and secure fiber networks, Lumea provides data transmission and emergency broadcast services across the eastern states of the Oceanian country. It was initially established as a business unit within TransGrid. Powering 3 million households with a portfolio of more than 10GW of renewable energy generation, the company is committed to developing regional businesses with smarter solutions. It focuses on two core areas — data services and wireless colocation on more than 37,000 high-voltage transmission towers.

Markedly, Ciena’s WaveLogic Ai-powered 6500 platform plays a crucial role in maximizing channel capacity for all applications, with tunability from 100G to 400G, and provides real-time optical networking performance data to quickly respond to unpredictability in traffic patterns. It enables a programmable infrastructure and is specifically designed to enhance transport economics with an ability to scale to 800G, thereby, extending its benefits to the latest applications with better user experiences.

Consequently, the robust characteristics will support Lumea’s Data Centre Interconnect strategy and facilitate it to offer superior 100G+ wavelength services, while benefiting customers with a cost-effective alternative. Apart from high-speed services, the alliance is expected to provide power and space efficiency benefits for Lumea’s enterprise, wholesale and government customers. Moreover, the modernization will also support applications used for telehealth and medical imaging with real-time data backup, while ensuring connectivity in regional areas for a more connected society.

Moving forward, Ciena is expected to benefit from the 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 robust business dynamics, 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, instilling optimism.

The Zacks Rank #3 (Hold) stock has gained 9% compared with the industry’s growth of 9.1% in the past six months.

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Some better-ranked stocks in the broader industry are United States Cellular Corporation USM, Ooma, Inc. OOMA and SeaChange International, Inc. SEAC, each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

United States Cellular delivered a trailing four-quarter earnings surprise of 123.9%, on average.

Ooma delivered a trailing four-quarter earnings surprise of 65.5%, on average.

SeaChange International delivered a trailing four-quarter earnings surprise of 12.2%, on average.

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