Ciena Corporation announced a new partnership with Trans Pacific Networks (TPN) to supply its coherent optical solutions for the Echo and Tabua subsea cable systems, a deal that will enable terabit‑scale wavelengths across the Asia‑Pacific region.
The Echo cable, the world’s longest subsea digital line segment at over 16,000 km, connects Singapore, Indonesia, Guam and the United States. The Tabua cable links Australia, Fiji, Hawaii and the U.S. mainland and is part of Google’s South Pacific Connect initiative. Ciena’s WaveLogic 6 Extreme coherent optics and Reconfigurable Line System will be deployed on both cables, providing a minimum capacity of 17 Tb/s per fiber pair on Tabua and a total system capacity of 272 Tb/s. The technology delivers high‑capacity, low‑latency connectivity that is essential for cloud providers, hyperscalers and enterprise customers driving AI and data‑center workloads.
Strategically, the contract positions Ciena at the heart of the AI‑driven bandwidth boom. Demand for data‑center interconnect (DCI) bandwidth is projected to increase sixfold over the next five years, with AI workloads requiring 800 Gb/s or more per wavelength. By securing the Echo and Tabua contracts, Ciena gains a foothold in a market that is expanding at a rate far above the broader optical industry, reinforcing its portfolio of AI‑ready infrastructure and supporting its goal of capturing inter‑regional bandwidth demand.
Ciena’s recent financial performance underscores the significance of the deal. The company reported record fiscal 2025 revenue of $4.77 billion, a 19% year‑over‑year increase, and entered fiscal 2026 with a $7.8 billion backlog. Adjusted operating margin rose to 13.2% in Q4 2025, and management has set a 2026 margin target of 17%. The new contract is expected to contribute to the company’s revenue growth trajectory and help achieve the higher margin goal by adding high‑margin coherent‑optics revenue to its mix.
CEO Gary Smith said the partnership “reinforces Ciena’s position as a global leader in high‑speed connectivity and its expanding role in the AI ecosystem.” Senior Vice President Brodie Gage added that “submarine cable operators are preparing for the AI era, and Ciena’s innovations will enable TPN to achieve high capacity, resiliency and cost efficiency.” These comments highlight Ciena’s confidence in its technology and its belief that the contract will drive future growth.
The contract strengthens Ciena’s competitive position in a market where bandwidth demand is outpacing supply. By securing a key role in two of the largest subsea projects in the region, Ciena is poised to capture a growing share of AI‑driven traffic, which is expected to dominate the next decade of data‑center interconnect growth. The deal also signals to investors that Ciena’s coherent‑optics platform is a critical enabler for the next wave of high‑capacity, low‑latency services, supporting the company’s long‑term revenue and margin expansion plans.
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