Biznet Upgrades Submarine Cable System to Enhance Internet Services
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 50 minutes ago
0mins
Source: Newsfilter
- Technology Upgrade: Biznet has deployed Ciena's WaveLogic 5 Extreme on its Biznet Nusantara Cable System-1 submarine cable, aiming to deliver 400G high-speed services, thereby enhancing internet connectivity across Indonesian islands to meet increasing bandwidth demands.
- Digitalization Acceleration: By collaborating with Ciena and Terrabit Networks, Biznet has not only increased network capacity but also achieved more efficient network control and automation, which is expected to significantly improve customer digital experiences and drive digital transformation in Indonesia.
- Market Demand Response: Ciena's regional director highlighted that Indonesia, as a key connectivity hub in Southeast Asia, is experiencing exponential growth in demand for high-capacity, low-latency connectivity in the AI era, and this upgrade will enable Biznet to better meet this demand and support long-term growth.
- Enhanced International Connectivity: The upgrade not only increases capacity on BNCS-1 but also improves the international gateway capacity of the Batam-Singapore link, ensuring customers can access global services faster and providing more stable and reliable connections.
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Analyst Views on CIEN
Wall Street analysts forecast CIEN stock price to fall
14 Analyst Rating
9 Buy
5 Hold
0 Sell
Moderate Buy
Current: 587.230
Low
190.00
Averages
253.50
High
305.00
Current: 587.230
Low
190.00
Averages
253.50
High
305.00
About CIEN
Ciena Corporation is a network system, software, and services company which provides hardware, software, and services to a range of network operators and enables enhanced network capacity, service delivery, and automation. Its segments include Networking Platforms, Platform Software and Services, Blue Planet Automation Software and Services, and Global Services. Networking Platforms segment consists of Optical Networking and Routing and Switching portfolios. Platform Software and Services which provides domain control management, analytics, data and planning tools and applications to assist customers in managing their networks. Blue Planet Automation Software and Services includes inventory management (BPI), multi-domain service orchestration, multi-cloud orchestration, route optimization and analysis (ROA), and unified assurance and analytics (UAA). Global Services segment offers a suite of value-added services that help its customers to build, operate and improve their networks.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Margin Expansion: Management expects operating margins to rise from 11.2% last year to 18.5%, reflecting significant improvements in cost control and technological advantages, which further enhance the company's financial health.
- Technological Leadership: Ciena's 1.6 Tbps product delivers double the transmission capacity at the same power consumption, significantly reducing energy costs for data transmission, which is crucial for energy-constrained hyperscalers, thereby enhancing its competitive edge.
- Valuation Considerations: Despite Ciena's stock price surge due to strong revenue and earnings growth, its enterprise value stands at approximately $77 billion with a 58x EBITDA multiple, prompting investors to carefully consider profit-taking at this elevated valuation.
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Biznet Upgrades Submarine Cable System to Enhance Internet Services
- Technology Upgrade: Biznet has deployed Ciena's WaveLogic 5 Extreme on its Biznet Nusantara Cable System-1 submarine cable, aiming to deliver 400G high-speed services, thereby enhancing internet connectivity across Indonesian islands to meet increasing bandwidth demands.
- Digitalization Acceleration: By collaborating with Ciena and Terrabit Networks, Biznet has not only increased network capacity but also achieved more efficient network control and automation, which is expected to significantly improve customer digital experiences and drive digital transformation in Indonesia.
- Market Demand Response: Ciena's regional director highlighted that Indonesia, as a key connectivity hub in Southeast Asia, is experiencing exponential growth in demand for high-capacity, low-latency connectivity in the AI era, and this upgrade will enable Biznet to better meet this demand and support long-term growth.
- Enhanced International Connectivity: The upgrade not only increases capacity on BNCS-1 but also improves the international gateway capacity of the Batam-Singapore link, ensuring customers can access global services faster and providing more stable and reliable connections.
See More
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- Technological Leadership: The introduction of Ciena's 1.6 Tbps product, which doubles capacity per wavelength while maintaining the same power requirements as an 800 Gbps system, provides a significant cost advantage in energy-constrained hyperscalers, reinforcing its market position.
- Sustained R&D Investment: Ciena allocates 20% to 25% of its revenue to R&D, allowing it to maintain a technological edge in long-haul data networking equipment, particularly in optical networking innovations, ensuring competitive advantages.
- Investor Valuation Concerns: Despite the stock price surge driven by robust revenue and earnings growth, Ciena's enterprise value stands at approximately $77 billion with a 58x earnings multiple, prompting investors to consider profit-taking as data center expansions may slow down.
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- Accelerating Revenue Growth: Ciena's total revenue grew by 33% last quarter, with management projecting a full-year growth of 28%, indicating a rapid expansion in market share amid surging demand for data center construction.
- Margin Expansion: Management expects operating margins to rise from 11.2% last year to 18.5%, reflecting significant improvements in cost control and technological advantages, which further enhance the company's financial health.
- Technological Leadership: Ciena's 1.6 Tbps product delivers double the transmission capacity at the same power consumption, significantly reducing energy costs for data transmission, which is crucial for energy-constrained hyperscalers, thereby enhancing its competitive edge.
- Valuation Considerations: Despite Ciena's stock price surge due to strong revenue and earnings growth, its enterprise value stands at approximately $77 billion with a 58x EBITDA multiple, prompting investors to carefully consider profit-taking at this elevated valuation.
See More
Biznet Upgrades Submarine Cable System to Enhance Internet Services
- Technology Upgrade: Biznet has deployed Ciena's WaveLogic 5 Extreme on its Biznet Nusantara Cable System-1 submarine cable, aiming to deliver 400G high-speed services, thereby enhancing internet connectivity across Indonesian islands to meet increasing bandwidth demands.
- Digitalization Acceleration: By collaborating with Ciena and Terrabit Networks, Biznet has not only increased network capacity but also achieved more efficient network control and automation, which is expected to significantly improve customer digital experiences and drive digital transformation in Indonesia.
- Market Demand Response: Ciena's regional director highlighted that Indonesia, as a key connectivity hub in Southeast Asia, is experiencing exponential growth in demand for high-capacity, low-latency connectivity in the AI era, and this upgrade will enable Biznet to better meet this demand and support long-term growth.
- Enhanced International Connectivity: The upgrade not only increases capacity on BNCS-1 but also improves the international gateway capacity of the Batam-Singapore link, ensuring customers can access global services faster and providing more stable and reliable connections.
See More
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- Strong Revenue Growth: Ciena's total revenue accelerated by 33% last quarter, with management projecting a full-year growth rate of 28%, indicating significant benefits from AI data center developments, particularly as cloud providers now contribute 42% of revenue.
- Technological Leadership: The introduction of Ciena's 1.6 Tbps product, which doubles capacity per wavelength while maintaining the same power requirements as an 800 Gbps system, provides a significant cost advantage in energy-constrained hyperscalers, reinforcing its market position.
- Sustained R&D Investment: Ciena allocates 20% to 25% of its revenue to R&D, allowing it to maintain a technological edge in long-haul data networking equipment, particularly in optical networking innovations, ensuring competitive advantages.
- Investor Valuation Concerns: Despite the stock price surge driven by robust revenue and earnings growth, Ciena's enterprise value stands at approximately $77 billion with a 58x earnings multiple, prompting investors to consider profit-taking as data center expansions may slow down.
See More
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- Price Fluctuation Analysis: The RSP ETF has a 52-week low of $173 per share and a high of $205.53, with the latest trade at $202.69, indicating stability and potential investment appeal in the current market.
- Technical Analysis Tool: Comparing the latest share price to the 200-day moving average provides investors with valuable insights for technical analysis, aiding in market trend assessment and investment timing.
- ETF Unit Trading Mechanism: ETFs trade similarly to stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, impacting liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in ETF shares outstanding highlights significant inflows (new units created) or outflows (old units destroyed), which can affect the underlying stocks held within the ETF and overall market performance.
See More
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- Market Decline: The S&P 500 and Nasdaq 100 fell by 0.67% and 0.61%, respectively, reaching 1.5-week lows, indicating concerns over a pullback in tech stocks, particularly as the AI-driven rally loses momentum, which may affect investor confidence.
- Rising Bond Yields: The 10-year T-note yield surged to a 16-month high of 4.69%, triggering risk-off sentiment that led to increased stock liquidation, further heightening market uncertainty and potentially prompting the Fed to adopt tighter monetary policies.
- Supportive Economic Data: April pending home sales rose by 1.4% month-over-month, surpassing expectations of 1.0%, and March figures were revised up to 1.7%, demonstrating resilience in the housing market that could provide some support for stocks.
- Oil Price Volatility: WTI crude prices fell nearly 1% following President Trump's comments on Iran, while the IEA reported a decline in global oil inventories of about 4 million bpd, suggesting that the market will remain undersupplied in the near term, impacting related energy stocks.
See More
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- Significant Price Target Increase: Citi raised Ciena's price target from $345 to $658, reflecting a strong confidence in the company's future growth with a projected 45x FY28 P/E ratio.
- Stable Performance Expectations: Analyst Atif Malik noted that Ciena's FY26 sales are in line with the market's expectations of 34% and 29% year-over-year growth, indicating strong performance in cloud capex and optical transport market trends.
- Improved Profitability: While FY26 earnings estimates remain unchanged, the upward revisions for FY27 and FY28 highlight Ciena's potential for sustainable revenue growth and enhanced profitability, further boosting investor confidence.
- Investor Focus Areas: Analysts emphasized key investor topics including FY26 and FY27 outlooks, supply environment, and progress in increasing high-performance product output, indicating Ciena's efforts to expand market opportunities and enhance overall market scale.
See More
