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Infinera tech powers Africa to Europe low-latency route

EditorAhmed Abdulazez Abdulkadir
Published 18/04/2024, 15:30
INFN
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SAN JOSE, Calif. - Infinera (NASDAQ: NASDAQ:INFN) has been selected by Paratus Group, a prominent African network provider, to enhance connectivity between Johannesburg and Lisbon with a new express route featuring low latency and high-capacity capabilities.

The deployment of Infinera's GX Series and FlexILS solutions has enabled services with a latency of 123 milliseconds on the route, which supports wavelengths up to 800G.

The technology was installed along the 1,890-km express fiber link from Johannesburg through Botswana to Swakopmund, Namibia, where it connects to the Equiano subsea cable leading to Lisbon, and extends to London and other European destinations. This development is a significant stride for network operators in South Africa, providing them with the fastest and most robust connectivity to Europe.

Paratus Group's infrastructure, which includes the newly completed express fiber link, aims to offer network operators both capacity and redundancy, ensuring resilience and uninterrupted service. As the landing partner for the Equiano subsea cable, Paratus has emphasized the importance of diverse routing and geographically separated paths to mitigate potential cable station faults and maintain network integrity.

Martin Cox, Paratus Group Chief Commercial Officer, highlighted the company's commitment to offering advanced technology and infrastructure for unparalleled wholesale capacity solutions. Schalk Erasmus, CEO of Paratus Group, expressed enthusiasm for the launch of the new superhighway, which is expected to significantly benefit network operators in the region.

Infinera's Senior Vice President of Worldwide Sales, Nick Walden, stated that the GX networking solution would allow Paratus to leverage high-capacity solutions while minimizing latency and maximizing reliability.

The information for this report is based on a press release statement from Infinera Corporation.

InvestingPro Insights

Infinera's strategic move to enhance connectivity between Johannesburg and Lisbon with Paratus Group could potentially impact its financial performance, a factor of interest to investors. According to recent data from InvestingPro, Infinera (NASDAQ: INFN) has a market capitalization of approximately $1.11 billion, reflecting the size of the company in the competitive tech landscape. Despite not being profitable over the last twelve months, analysts predict that the company will turn a profit this year, as per one of the InvestingPro Tips.

The company's stock has experienced a large price uptick over the last six months, showing a 43.98% return, which could indicate investor confidence in its growth prospects and strategic initiatives like the one with Paratus Group. However, it's important to note that Infinera's stock price movements have been quite volatile, a factor that investors should consider when evaluating the company.

InvestingPro data also shows that Infinera is trading at a high Price / Book multiple of 6.1, suggesting that the stock may be priced optimistically in comparison to the company's book value. This, coupled with a high EBIT valuation multiple, might raise questions about the stock's current valuation levels. Nonetheless, with liquid assets exceeding short-term obligations, Infinera appears to have a solid liquidity position, which is crucial for ongoing operations and investment in new projects.

For investors seeking more in-depth analysis and additional insights, there are six more InvestingPro Tips available that could provide further clarity on Infinera's financial health and prospects. To access these tips and enhance your investment strategy, consider using the promo code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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