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July 22, 2009
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Recently, Linthicum, CIENA (CIEN) Maryland-based, an OEM of optical networking equipment, software, and services announced that its Carrier Ethernet Service Delivery (CESD) platform has been deployed by Clearwire (CLWR) for the newly launched CLEAR 4G mobile WiMAX service.
Clearwire is using Ciena’s LE-311v Service Delivery Switches, CN 5305 Service Aggregation Switches and Ethernet Services Manager software for its 4G backhaul solution. The Ethernet Services Manager’s intelligent software automation will help Clearwire build and deploy large-scale backhaul networks using platforms that can be installed, configured, provisioned and remotely reprogrammed at higher speed, thereby reducing costs and accelerating service delivery.
We believe Ciena’s focus on helping carriers transition to next generation networks places it in one of the fastest growing portions of the telecommunications market. Also Ciena’s Carrier Ethernet platform enables differentiation and provides a competitive advantage to the company. Because Ethernet is a standard, service providers can extract better efficiencies and therefore lower costs across the network.
According to Ovum-RHK, the global Carrier Ethernet business services market is expected to reach $31.0 billion by 2012, fueled by demand for high-capacity Layer 2 Virtual Private Networks (VPNs), video, business continuity and disaster recovery, and cloud computing.
Although Ciena continues to grow, the company has a small share of the market relative to many of its competitors, which include Alcatel-Lucent (ALU), Cisco (CSCO)">CSCO), Ericsson, Fujitsu, Nokia (NOK)">NOK), Nortel (NT)">NT), and Tellabs (TLAB)">TLAB). These larger customers may have better customer relationships and offer a full suite of products, eliminating the need for multiple vendors. Moreover, these competitors have greater financial resources and can compete aggressively on price.
We maintain our Hold rating on Ciena shares.
Read the full analyst report on "CIEN"
Read the full analyst report on "CLWR"
Read the full analyst report on "ALU"
Read the full analyst report on "CSCO"
Read the full analyst report on "FJTSY.PK"
Read the full analyst report on "NOK"
Read the full analyst report on "NT"
Read the full analyst report on "TLAB"
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