B. Riley FBR analyst Dave Kang says multiple Chinese media sources indicate that China Telecom (CHA) plans to deploy a ROADM-based network in both Northern and Southern China after successfully deploying a similar network in the middle and lower sections of the Yangtze River region. The analyst believes Lumentum (LITE) will be the primary supplier of ROADMs, or reconfigurable optical add/drop multiplexers. He points out the company's management recently indicated that several products, including ROADMs, have been expedited by Chinese customers. Further, Kang expects China Mobile (CHL) to follow China Telecom's lead, most likely in mid-2018. The analyst thinks the Chinese ROADM cycle will be an important catalyst for Lumentum in 2018 and beyond. The stock is up 11c to $53.51 in afternoon trading. Kang has a Buy rating on Lumentum with an $89 price target.