The contract calls for Cable & Wireless to purchase a "minimum" of $350 million worth of equipment during the next five years, according to the companies.
Tellium will sell Cable & Wireless its recently introduced Aurora Optical Switch and related technologies as part of the deal. Cable & Wireless plans to launch Tellium's gear starting in the first quarter of next year.
The Oceanport, N.J.-based company is one among several start-up high-end networking companies attempting to spur interest from telecommunications customers for their optical networking equipment.
Tellium announced a $250 million deal with Extant last fall. Extant subsequently began launching the equipment in April of this year as part of a 50-city network construction project scheduled for completion next year.
"This was a competitive process, and we're delighted to say we won," said Tellium chief executive Harry Carr. "We are currently competing for additional business."
Some start-ups have included access to potentially lucrative stock as part of equipment deals with network operators. But Carr claims Tellium made no such deal to secure Cable & Wireless' business, though he did not rule out the use of stock warrants with future customers.