Verizon Communications announced Tuesday that it has selected Ciena and Cisco Systems to help the carrier build a next-gen 100G metro network in the U.S. and keep pace with anticipated data demand.
The selection was expected, and “Verizon could spend $200 million or more per year split among the suppliers once the initiative is in full operation,” analyst Simon Leopold, of Raymond James, surmised in a research note issued Wednesday.
Verizon didn’t break down the share, but Cisco is believed to have “secured the lead vendor position,” according to a report from Infonetics Research's principal analyst, carrier transport networking, Andrew Schmitt that was issued on March 18. Schmitt, who expects that this business will be worth about $250 million per year, wrote that Ciena is positioned to take that lead slot should Cisco stumble. Still, the deal is a “huge win” for Cisco and its new NCS4000, he added.
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