Ciena (NASDAQ:CIEN, news, filings) has integrated 40G coherent technology into its CN4200 platform, bringing higher capacity to metro and regional applications. The new module will allow customers to use DPQPSK modulation, coherent detection, and electronic dispersion compensation to send four times as much data on a 10G wavelength. The solution will apparently work over impaired fiber and without network redesign.
This technology came to Ciena via its acquisition of Nortel’s MEN division, which closed in late March. The integration of the two companies is just beginning, but Ciena is clearly moving quickly to combine the product sets and thereby increase their addressable market beyond those served by the two divisions.
So far so good, but there a lot of hard work left to do. When the Ciena/Nortel-MEN deal came out, Ciena’s stock tumbled due to the risks they were taking on. But since then, it has been doing quite well – partly due to improved outlook for the sector of course, but I think some of the fears that Ciena bit off more than it can chew have also dissipated. Somewhat anyway.
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