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Ciena Corporation And Cisco Systems, Inc. : Land Verizon Metro Buildout



The topmost telecommunication equipment manufacturers Ciena and Cisco are the two main candidates who want to land the Verizon metro contract.

The Ciena Corporation is a US-based supplier and manufacturer of telecommunication equipment, and has global recognition for their operations. Along with the communication equipment, the Ciena Corporation also famous in providing the software and software related services which supports the transfer of video, voice, and data services. On the other hand, Cisco Systems, Inc. is the worldwide leader in networking that transforms how people connect, communicate and collaborate. Basically it is engaged in the design and production of Internet Protocol-based networking products, which are geared towards the information technology industry.

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Alex Henderson, an analyst has tipped Ciena and Cisco to win the Verizon metro contract. In his views Mr. Henderson said: “We believe Verizon is poised to announce a major award to buildout its Metro infrastructure. It is our understanding that this is a major buildout, and that there are three companies in the running for the win. Ciena appears to have the inside track, Cisco appears likely to be the second supplier, and Coriant is also in the running. We expect Verizon to announce two winners, with the Ciena taking the lion’s share, and Cisco winning the second seat. This should also result in significant positive demand for a number of the component companies. Our sources suggest there will be over 10,000 ROADMs in this buildout, and huge mesh architecture.”

It is displayed in the facts that the VerizonĀ telecommunication equipment project is a 100G metro optical buildout, which will be part of a long-haul network upgrade. It is declared by Verizon that previously the opportunity was for Fujitsu and Tellabs, these names were among its chosen suppliers for the metro. This deal estimated worth is $200-300 million, and the project is expected to take two years to complete. The terms, timing, and revenue division of this buildout have so far not been divulged by any party. Ciena stock was up 2.82% on Friday, closing at $19.15. Cisco, meanwhile, was trading at $27.68, up 2.90%. Cowen’s Paul Silverstein Managing Director at Cowen company believes that Verizon will likely select Ciena to be a supplier for its upcoming 100G metro optical buildout. “Based on our industry checks, we expect Ciena to be awarded one of the two seats and to gain at least 50% of the looming award,” Silverstein wrote. “To be clear, our checks indicate that Verizon has not selected vendors for this 100Gbps metro optical build-out. That said, our checks also indicate that Ciena currently is well in front of the pack, with one of Alcatel Lucent (ALU) , Coriant or Fujitsu likely to be selected as the other vendor.”

 



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