Light Reading
Infinera acknowledged during its first quarter earnings call that it's supporting 100G deployment at Level 3 Communications.

Infinera Confirms Level 3 Deal

Dan O'Shea
4/25/2014
100%
0%

Following its quarterly earnings report this week, Infinera is looking even less like a company licking its wounds after losing out on the 100G business at Verizon Communications. During the earnings call, the company reported 15% year-over-year revenue growth, and revealed it began realizing revenue from Level 3 Communications' 100G upgrade during the quarter.

"I don't think this was a surprise to anybody," said Infinera Corp. (Nasdaq: INFN) CEO Tom Fallon on the call regarding Level 3. He declined to attach a monetary value to the Level 3 business. Infinera has long been rumored to be a primary candidate for the Level 3 business, and has worked with the carrier before. But after Infinera missed out on the rumored Verizon deal, it was worth a getting some confirmation on the Level 3 deal from Infinera. (See Analyst: Infinera Loses VZ Deal to AlcaLu and Infinera: We're Fine, Thanks…)

Infinera also said its list of top customers during the quarter included a Tier 1 operator, a cable MSO, and a company described as an "Internet content provider." Infinera declined to identify the Tier 1 operator, but some analysts speculate it's CenturyLink Inc. (NYSE: CTL).

On the call, Fallon also was very upbeat about the market overall, the company's first quarter results, and near-term outlook. (See Infinera Reports Q1 Growth.)

He added that both capacity upgrades and new network build-outs -- and not always by the usual suspects -- continue to drive growth in the optical sector. "We've said for a long time that the industry is too focused on the top two Tier 1s, and not enough on other providers, including the Web 2.0 providers, which is where a lot [of] the future growth will be."

— Dan O'Shea, Managing Editor, Light Reading

(7)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
DOShea
50%
50%
DOShea,
User Rank: Blogger
5/2/2014 | 10:50:47 AM
Re: Level 3
Yes, the quote above I think answers the earlier question to some degree, though I think it was Fallon who said that, wasn't it? There were very specific this time about Level 3, not dropping hints at all, as they had previously. Of course, they didn't specify the contract value, but I believe he said the revenue woul play out over several quarters.
tojofay
50%
50%
tojofay,
User Rank: Moderator
4/29/2014 | 3:09:13 PM
Re: Level 3
Brad Feller - Chief Financial Officer INFN Q1 CC

"Yes. So they have been a very substantive part of our business in the past, they have been a long-term partner of ours and they now reselected to go to market with a 100 gig. That revenue started in Q1 and we anticipate it ramping over the next several years. I'm not going to quantify the size of the deal, I think they -- and appreciate that. But, if you look at level 3's business model, they drive to be the largest provider of ways in the world and provide them at the lowest dollar per bit."

 

 
SachinEE
0%
100%
SachinEE,
User Rank: Light Sabre
4/29/2014 | 2:09:01 PM
Re: Level 3
If the deal is on (and it must be considering that Infinera is still able to post such impressive figures even in the face of what most of us considered a major blow with Verizon, my question is what game are they playing really. They don't want to give the information (on their official capacities) but can't seem to stop dropping hints and rumors about the deal and its benefits! Why all this secrecy?
SachinEE
100%
0%
SachinEE,
User Rank: Light Sabre
4/29/2014 | 2:06:26 PM
Re: Future Growth right on the money
I think the real credit to Infinera should be awarded because of the company's foresight. When most companies forecast on their expected earnings, they usually factor in deals that they feel most confident about even though they may not have been formalized. Considering how rife the rumor about the Verizon deal with Infinera was, it came as a surprise to me that the deal did not fall through. And yet Infinera does not look like it even took a scratch from that blow meaning they had left room for that too.
rgrutza600
100%
0%
rgrutza600,
User Rank: Lightning
4/27/2014 | 9:00:40 PM
Web 2.0 companies
Google is spending almost $10 billion a year on infrastructure.  Though they were not mentioned by name, I would assume they are one of the "3 of the top 4 internet content providers" talked about.
DOShea
100%
0%
DOShea,
User Rank: Blogger
4/27/2014 | 4:47:08 PM
Level 3
Level 3 told LR last fall said it was getting close to 100G upgrade. It has never said anything more specific since, to my knowledge, but Infinera did drop some heavy hints during its Q4 earnings call that it was in on this business. What Fallon said this time around was that Infinera had gotten permission from Level 3 to talk about it, although apparently not in great detail.
thebulk
100%
0%
thebulk,
User Rank: Light Sabre
4/25/2014 | 3:30:23 PM
Future Growth right on the money
I really like the last statement about web 2.0 providers being a sizable chunk of future growth. Nice to see that shift. 
Educational Resources
sponsor supplied content
Educational Resources Archive
Flash Poll
LRTV Huawei Video Resource Center
Sales Director of INIT on Plug & Play Switch Devices

9|19|14   |   3:21   |   (0) comments


INIT Italy uses both the Huawei S5700 and S7700 series switches for the campus LAN environment. Sales Director Andrea Curti says their company chose these Huawei devices over others because of their performance, flexible scalability and plug-and-play features.
LRTV Huawei Video Resource Center
Saudi Arabia Upgrades Vocational Training System

9|19|14   |   3:31   |   (0) comments


The Technical and Vocational Training Corporation (TVTC) has 100,000 students, 150 government-owned institutions and oversees 1000 private institutes. The CIO of TVTC explains that Huawei devices have allowed them to manage multiple datacenters using just one software program, scientifically tracking the progress of students and teachers, saving them millions.
LRTV Huawei Video Resource Center
Huawei's Media Solutions Are Here to Stay

9|19|14   |   4:35   |   (0) comments


The current media revolution requires rapid upgrades in technology. New formats (HD, 3D, 4K etc.) and the subsequent explosion of file sizes demand sophisticated network and storage architecture. Social media and the multiple distribution channels require a robust asset management system. Gartner analyst Venecia Liu speaks about the current technological trends in ...
LRTV Huawei Video Resource Center
Microgenesis on Huawei's Switches

9|19|14   |   3:57   |   (0) comments


Microgenesis is a solutions and system integrator company in the Philippines whose areas of expertise include data centers, networking and security products. In this video, Executive Director Jeffrey Choa talks to us about his customers needs and they benefit from using Huawei switches.
LRTV Huawei Video Resource Center
Network Solutions Help the Philippines Jump Ahead

9|17|14   |   2:59   |   (0) comments


In the past, the Philippines has under-invested in technology. Now, the CEO of Softshell talks about how Huawei products help the Philippines jump ahead as the economy improves.
LRTV Huawei Video Resource Center
VCS Observation for Safer Cities in the Netherlands

9|17|14   |   5:20   |   (0) comments


Holland's VCS Observation has been operating for 22 years. Its main goal is to get cities safer. CEO Wim van Deijzen tells us some of the challenges his company faces and how Huawei is helping to overcome these challenges.
LRTV Huawei Video Resource Center
A Conversation With Serbia's Ministry of Interior

9|17|14   |   4:38   |   (0) comments


At HCC 2014, the Assistant Minister of the Ministry of Interior of the Republic of Serbia talks to us about his projects and corporation with Huawei. Solutions like Safe City and E-Government and services like cloud computing are just some of the areas his department is interested in.
LRTV Huawei Video Resource Center
IHS Analyst Discusses eLTE at CCW 2014

9|10|14   |   7:09   |   (0) comments


Thomas Lynch, associate director of critical communications at IHS Technology, talks about broadband in critical communications.
LRTV Huawei Video Resource Center
TCAA on Huawei eLTE: A Broadband Solution for Mission-Critical Communications

9|10|14   |   2:29   |   (0) comments


At CCW2014 in Singapore, the TCCA's Phil Kidner talks about the importance of broadband data for critical communications.
LRTV Custom TV
Spotlight on Cisco: SDN for Optical Networks

9|8|14   |   9:27   |   (0) comments


Cisco's Greg Nehib talks OpenFlow and more on the 'Software-Defined Networking for Optical Networks' panel at the Big Telecom Event in June 2014.
LRTV Custom TV
Cisco's Evolved Programmable Network (EPN)

9|8|14   |   4:05   |   (0) comments


A look at the various demos Cisco showed at Light Reading's Big Telecom Event highlighting Cisco's EPN innovation and how SDN and NFV technologies are enabling a variety of new services.
LRTV Huawei Video Resource Center
The Future of Ultra-Broadband, With Kevin Kelly (UBBF2014)

9|5|14   |   1:13   |   (1) comment


If you think the technological changes we've seen up to now are astounding, just wait until you see what the future has in store. Discuss upcoming breakthroughs with Kevin Kelly, Founding Executive Editor of Wired Magazine, at the Huawei Ultra-Broadband Forum on September 24.
Upcoming Live Events
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
Mosaik Solutions presents its 2014 maps of the wireless world in the US, including cable WiFi deployments, LTE network expansion and 600MHz auction boundaries.
Today's Cartoon
Vacation Special Caption Competition Click Here
Latest Comment
Hot Topics
Photos: Qualcomm Takes Over San Francisco
Sarah Reedy, Senior Editor, 9/19/2014
Exclusive: Microwave Maven Exalt Is Cooked
Dan Jones, Mobile Editor, 9/22/2014
NFV & The Data Center: Top 10 Takeaways
Sarah Reedy, Senior Editor, 9/18/2014
EMC Mulls Merger With HP or Dell – Reports
Mitch Wagner, West Coast Bureau Chief, Light Reading, 9/22/2014
Gigabit Nets Boost GDP, Says FTTH Council
Jason Meyers, Senior Editor, Utility Communications/IoT, 9/23/2014
Like Us on Facebook
Twitter Feed