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Ciena Expands Global Subsea Footprint With ACE & ECHO Upgrades
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Key Takeaways
Ciena will upgrade the 17,000-km ACE route with more than 30 Tb/s of subsea capacity.
FLAG is deploying Ciena's WL6e technology across its dedicated fiber pair on the ECHO cable system.
Ciena's WL6e adoption has surpassed WL5e, while RLS holds roughly 70% share in disaggregated line systems.
Ciena Corporation (CIEN - Free Report) is strengthening its position in the global subsea networking market with two major deployments targeting some of the world’s key international connectivity corridors. The company has been selected by the Africa Coast to Europe (ACE) cable system consortium to upgrade a roughly 17,000-km route connecting Western Europe, West Africa and South Africa. Additionally, FLAG is deploying Ciena’s WaveLogic 6 Extreme (WL6e) technology on its dedicated fiber pair in the ECHO trans-Pacific subsea cable system connecting Singapore, Guam and California.
Under the upgrade, ACE is deploying Ciena’s 6500 platform powered by WL6e coherent optical technology to deliver more than 30 Tb/s of capacity. The upgraded infrastructure is expected to provide a high-capacity path serving a region with access to more than 500 million people. The ACE deployment also incorporates Ciena's Navigator Network Control Suite, providing visualization and management capabilities across the network. Ciena's Liquid Spectrum applications add another layer of intelligence. The Channel Margin Gauge provides real-time visibility into signal-to-noise ratio margins for wavelengths. This information can help operators determine where additional capacity may be available.
Ciena's second major subsea deployment involves FLAG and the ECHO cable system. FLAG is deploying Ciena's Waveserver platform with WL6e 1.6 Tb/s coherent optics across a reconfigurable line system on its more than 16,000-km dedicated fiber pair within ECHO. The ECHO route also complements FLAG's WL6e-powered India Asia Express network. Together, the networks create a broader connectivity architecture spanning India, South Asia, Southeast Asia and North America.
Ciena continues to add capacity for optical deployments across metro, long-haul, subsea and managed optical fiber networks. Hyper-Rail has secured additional multi-rail wins. The company targets customer standardization by the end of 2026, followed by a ramp to several hundred million dollars in revenue in 2027. WL6e adoption has already surpassed WL5e, while RLS holds roughly 70% share in disaggregated line systems.
How Does CIEN Stack Up Against Market Peers?
Corning Incorporated (GLW - Free Report) continues to strengthen its competitive position through innovation across optical connectivity, advanced glass and semiconductor applications, as well as scale its domestic solar operations through polysilicon, wafer and module manufacturing capabilities. This month, Corning secured a multiyear, multibillion-dollar agreement with Verizon to supply more than 80 million miles of high-density optical fiber and connectivity solutions through 2032, strengthening its long-term revenue visibility and positioning it to benefit from expanding broadband and AI infrastructure demand. GLW previously announced a long-term partnership with NVIDIA to expand U.S.-based optical connectivity manufacturing capacity by 10x and increase domestic fiber production capacity by more than 50%.
Nokia (NOK - Free Report) continues to benefit from its broad portfolio spanning mobile networks, optical transport, IP routing, fixed broadband, software and services. This integrated offering addresses evolving customer requirements across telecommunications operators, enterprises and hyperscale cloud providers. In September, Nokia partnered with Planters Broadband Cooperative to build an AI-ready fiber network for underserved communities in southeast Georgia. The project is expected to expand broadband access, strengthen Nokia’s position in fiber infrastructure and support growing demand for AI-ready connectivity. It also launched an industry-first initiative to help operators accelerate AI-era network innovation, speed deployment of AI-driven services and improve operational efficiency.
CIEN Price Performance, Valuation and Estimates
Shares of CIEN have gained 162.4% in the past year compared with the Communications - Components industry’s surge of 142.1%.
Image Source: Zacks Investment Research
CIEN trades at a forward 12-month price-to-earnings (P/E) ratio of 37.35, above the industry’s 36.02.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CIEN’s earnings for fiscal 2026 has been revised upward over the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
Ciena Expands Global Subsea Footprint With ACE & ECHO Upgrades
Key Takeaways
Ciena Corporation (CIEN - Free Report) is strengthening its position in the global subsea networking market with two major deployments targeting some of the world’s key international connectivity corridors. The company has been selected by the Africa Coast to Europe (ACE) cable system consortium to upgrade a roughly 17,000-km route connecting Western Europe, West Africa and South Africa. Additionally, FLAG is deploying Ciena’s WaveLogic 6 Extreme (WL6e) technology on its dedicated fiber pair in the ECHO trans-Pacific subsea cable system connecting Singapore, Guam and California.
Under the upgrade, ACE is deploying Ciena’s 6500 platform powered by WL6e coherent optical technology to deliver more than 30 Tb/s of capacity. The upgraded infrastructure is expected to provide a high-capacity path serving a region with access to more than 500 million people. The ACE deployment also incorporates Ciena's Navigator Network Control Suite, providing visualization and management capabilities across the network. Ciena's Liquid Spectrum applications add another layer of intelligence. The Channel Margin Gauge provides real-time visibility into signal-to-noise ratio margins for wavelengths. This information can help operators determine where additional capacity may be available.
Ciena's second major subsea deployment involves FLAG and the ECHO cable system. FLAG is deploying Ciena's Waveserver platform with WL6e 1.6 Tb/s coherent optics across a reconfigurable line system on its more than 16,000-km dedicated fiber pair within ECHO. The ECHO route also complements FLAG's WL6e-powered India Asia Express network. Together, the networks create a broader connectivity architecture spanning India, South Asia, Southeast Asia and North America.
Ciena continues to add capacity for optical deployments across metro, long-haul, subsea and managed optical fiber networks. Hyper-Rail has secured additional multi-rail wins. The company targets customer standardization by the end of 2026, followed by a ramp to several hundred million dollars in revenue in 2027. WL6e adoption has already surpassed WL5e, while RLS holds roughly 70% share in disaggregated line systems.
How Does CIEN Stack Up Against Market Peers?
Corning Incorporated (GLW - Free Report) continues to strengthen its competitive position through innovation across optical connectivity, advanced glass and semiconductor applications, as well as scale its domestic solar operations through polysilicon, wafer and module manufacturing capabilities. This month, Corning secured a multiyear, multibillion-dollar agreement with Verizon to supply more than 80 million miles of high-density optical fiber and connectivity solutions through 2032, strengthening its long-term revenue visibility and positioning it to benefit from expanding broadband and AI infrastructure demand. GLW previously announced a long-term partnership with NVIDIA to expand U.S.-based optical connectivity manufacturing capacity by 10x and increase domestic fiber production capacity by more than 50%.
Nokia (NOK - Free Report) continues to benefit from its broad portfolio spanning mobile networks, optical transport, IP routing, fixed broadband, software and services. This integrated offering addresses evolving customer requirements across telecommunications operators, enterprises and hyperscale cloud providers. In September, Nokia partnered with Planters Broadband Cooperative to build an AI-ready fiber network for underserved communities in southeast Georgia. The project is expected to expand broadband access, strengthen Nokia’s position in fiber infrastructure and support growing demand for AI-ready connectivity. It also launched an industry-first initiative to help operators accelerate AI-era network innovation, speed deployment of AI-driven services and improve operational efficiency.
CIEN Price Performance, Valuation and Estimates
Shares of CIEN have gained 162.4% in the past year compared with the Communications - Components industry’s surge of 142.1%.
Image Source: Zacks Investment Research
CIEN trades at a forward 12-month price-to-earnings (P/E) ratio of 37.35, above the industry’s 36.02.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CIEN’s earnings for fiscal 2026 has been revised upward over the past 60 days.
Image Source: Zacks Investment Research
Ciena currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.