Wireless backhaul solutions provider Ceragon Networks Ltd. (Nasdaq: CRNT; TASE:CRNT) has signed a multiyear global supply agreement with Hong Kong-based 3G telecommunications provider Hutchison 3 Group.
The company did not disclose the size of the deal, but market sources estimate it at $5-10 million.
Tel Aviv-based Ceragon will provide Hutchison with its next-generation high capacity Ethernet solutions to support Hutchison's network migration plans from TDM to IP, which will enable Hutchison to boost network capacity to meet the growing demand for data and multimedia services.
Hutchison 3 Group, a unit of Hutchison Whampoa Ltd. (HKSE: 0018), has already launched commercial 3G services in Australia, Austria, Denmark, Hong Kong, Ireland, Israel, Italy, Sweden and the UK, and had more than 20 million 3G customers by March.
Ceragon's share rose 1.5% on Nasdaq yesterday to $6.82, giving a market cap of $242 million. The share rose 8.6% by midday on the TASE to NIS 28.97.
Published by Globes [online], Israel business news - www.globes-online.com - on July 15, 2009
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