Ceragon Networks Ltd. (NASDAQ: CRNT) shares are demonstrating a positive trajectory on US indices today. As of the latest assessment in the current session, Ceragon’s stock exhibits a 6.41% increase, trading at $2.49. This surge in CRNT stock value follows the revelation of a substantial agreement made public earlier today.
In an official statement, Ceragon (CRNT) disclosed the formalization of a strategic alliance with a global integrator, aimed at bolstering a network modernization initiative for a leading Tier-1 Operator in India. As delineated in the agreement, Ceragon will play a pivotal role in supporting an extensive modernization endeavor, concentrating on enhancing existing network capabilities, expanding capacity, elevating nationwide connectivity, and delivering services tailored to meet, if not surpass, the evolving demands of India.
This novel partnership positions CRNT’s latest solutions as the preferred choice for deployment by the aforementioned client. The contractual arrangement, valued at approximately $150 million, encompasses planning, product delivery, and deployment services. Moreover, it includes a multi-year commitment to Ceragon’s Managed Services, encompassing day-to-day monitoring, management, and maintenance oversight of the microwave and millimeter-wave network.
The precise valuation of the agreement may experience fluctuations of up to 25%, contingent upon the actual deployment requirements during the project rollout. Ceragon anticipates commencing the delivery and deployment of new sites in the second quarter of 2024. The deployment phase is slated for completion within 7-9 quarters, with an estimated 75% of the project value anticipated to be realized within this timeframe.
The remaining 25% of the contract value, designated for Managed Services & Maintenance, is expected to commence recognition within a year from deployment, respectively. Ceragon collaborated with a prominent Global Integrator, entrusted with overseeing the multi-billion network modernization project for the Tier-1 Operator. The collaborative efforts ensured alignment with the stringent requirements of the Tier-1 Operator, particularly in the microwave and millimeter-wave solution domain.
All upcoming microwave sites will leverage Ceragon’s novel ultra-compact, energy-efficient all-outdoor radio. Additionally, a multitude of mmW sites will be deployed utilizing CRNT’s E-Band product. The sheer magnitude and comprehensive nature of this initiative further solidify Ceragon’s standing as a renowned and dependable partner in the wireless transport sector, attesting to its innovation and reliability.
