Ericsson & Telstra Offers Breakthrough Optical Transmission - Analyst Blog

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Leading communications technology and services provider EricssonERIC has recently collaborated with Australia's largest telecommunications giant Telstra for superior performance. The collaboration primarily involves deploying U.S. based global telecommunications network supplier Ciena Corporation's CIEN highly advanced optical technology, WaveLogic 3, to provide unparalleled network performance across Australia.

WaveLogic 3 optical technology will allow Telstra to offer lowest latency, maximum reach and highly resilient link from Sydney to Perth. Powered by the high performance link, Telstra's customers will be able to enjoy high-speed and low-latency link that will be highly beneficial to run multiple applications ranging from financial trading to diverse cloud-based offerings.

Telstra's achievements have earned its a Guinness World Record as it has successfully created 10,358 km un-regenerated terrestrial optical transport between Australia's most populous cities namely Melbourne, Sydney and Perth. WaveLogic 3 optical technology has also empowered Telstra to re-route traffic during natural disasters over long distances without any technical disturbance.

Ericsson's management stated that this latest high performance link eliminates the use of intermediary optical and data regeneration that in turn minimizes operational costs and maximizes latency performance. Ciena's WaveLogic Extreme technology has also allowed Telstra to increase its 100Gbps optical link to 200Gbps per wavelength seamlessly.

This collaboration with Telstra adds one more feather to Ericsson's cap and strengthens its position as a premier telecom services provider. Ericsson's market expertise and knowledge make it highly popular among operators that want to enlarge network coverage or upgrade existing networks. Telstra's choice of Ericsson reaffirms the faith that telecommunication operators have in Ericsson. Also, the link between Sydney and Perth is highly critical for Trans-Australian and international telecommunications and holds tremendous potential for Ericsson to strengthen its presence in the Australian market going forward.

Moreover, Ericsson's state-of-the-art technology allows it to offer superior quality customer service amid high demand. As competition intensifies among telecommunication operators, Ericsson can expect better business prospects in the future.

Ericsson currently holds a Zacks Rank #4 (Sell). Some better-ranked wireless equipment stocks in the industry include Juniper Networks, Inc. JNPR and Zhone Technologies Inc. ZHNE . Both sport a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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