Infinera vs. Ciena: Who Will Win the Multimillion-Dollar Deal With Level 3 Communications?

At risk of losing U.S. partnerships, Level 3 Communications  (NYSE: LVLT  ) may soon strike a multimillion-dollar, three-year optical networking deal with Infinera  (NASDAQ: INFN  ) or Ciena  (NYSE: CIEN  ) .

While Level 3 seemed satisfied with Huawei's networking equipment for years, that all changed in the past few months. In March and in April, both President Obama and House Intelligence Committee Chairman Mike Rogers (R-Mich.) have made it harder for Huawei to operate in the U.S. It's only a matter of time until Level 3 -- and it's Huawei equipment -- finds it difficult to do business in the U.S.

Soon, Level 3 will probably go the way of AT&T and Verizon and spurn Huawei's equipment. That leaves open a huge multimillion-dollar, multi-year deal wide open. The two companies likely to fill the void are U.S.-based Infinera or Ciena.

So, who will Level 3 choose? In the video below, Motley Fool contributor Kevin fills you on which company will prevail. The reason might surprise you.

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  • Report this Comment On May 23, 2013, at 10:09 AM, cabincruser wrote:

    Hi Kevin ,

    are you basically proposing that since cien sells to China and INFN does not , that Level 3 would not run into the same problems with infn that they did with Huawei ..... and that they might with cien because they deal with China .

    how much does ciena deal with China?

    -cabincruser

  • Report this Comment On May 23, 2013, at 9:10 PM, gs77 wrote:

    So Level 3 not only won't deal with any Chinese companies in the future, but will also likely only deal with partners who also don't deal with Chinese companies?

    Hmm...I don't see that this is necessarily a logical inference. You present one comment from the CEO as the sum total of your evidence and analysis....respectfully this is a bit weak/shallow for an analysis of two competitors' chances to win a big contract. Unfortunately becoming typical of MF pieces.

  • Report this Comment On May 25, 2013, at 10:20 AM, kain84 wrote:

    The banner title is attractive to readers (better chance to trap us to waste our time). In the name of a financial analyst, when your write, please show that

    1) you did your homework

    2) you did your analysis

    3) you made LOGICAL deduction, even for hearsay

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