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Ciena's (CIEN) XGS-PON Solution Boosts Connectivity in Norway

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Ciena Corporation (CIEN - Free Report) recently tied up with Sodvin AS, to deploy its cutting-edge XGS-PON Solution across the Trondelag county, Norway,  promising faster Internet speed in the Nordics.

By adopting Ciena’s XGS-PON Solution, Norway-based telecom firm Sodvin AS aims to bolster its existing broadband infrastructure, moving beyond traditional GPON technology. With symmetrical speeds of up to 10 Gb/s both upstream and downstream, residents and businesses in Trondelag are likely to experience a significant boost in their Internet capabilities.

In addition to the XGS-PON solution, Sodvin’s residential broadband infrastructure leverages Ciena’s 5164 Routers, XGS-PON uOLTs (micro optical line terminals) and 3801 ONUs (optical network units).  These components enable Sodvin to expand its network capacity in response to growing demand, ensuring that customers receive reliable service with improved quality. The use of uOLT pluggables further enhances deployment capabilities, allowing Sodvin to scale operations seamlessly while maintaining a sustainable footprint.

Hanover, MD-based CIEN is one of the leading providers of optical networking equipment, software and services. The company operates its business under four segments — Networking Platforms, Platform Software and Services, Blue Planet Automation Software and Services and Global Services.

Ciena’s innovative offerings are witnessing healthy adoption among core customers. In June 2024, Ciena announced that Denmark-based digital service provider TDC NET is harnessing its rich portfolio of advanced solutions to improve metro and long-haul networks powered by scalability and sustainability.  

However, the persistence of macroeconomic volatility is causing lower-than-expected order volumes from service providers, thereby affecting the company’s performance. High customer concentration risk is another concern. A bulk of its revenues is concentrated among a few large global communications service providers. Given the competitive nature of the industry, the loss of any one of its key customers could severely impact the company's performance. 

CIEN currently carries a Zacks Rank #5 (Strong Sell). The stock has gained 9.7% compared with the industry’s growth of 9.4% in the past year.

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