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March 14, 2012

Globacom Nigeria taps Ceragon Networks for wireless backhaul expansion

Wireless backhaul specialist Ceragon Networks has inked a $6 million deal with Globacom Nigeria (Glo) to expand the mobile operator's network that it helped develop in 2010.

Ceragon will deploy its FibeAir IP-10 and Evolution IP Long-Haul systems throughout Nigeria, a nation where Glo has become the second largest mobile operator and the fastest-growing telecom company in all of Africa.

A major aspect of the deployment will entail Ceragon modernizing Glo's 2G/3G infrastructure network in Lagos to expand traffic capacity, while also providing legacy infrastructure support. The result will enable subscribers with minimal or even no mobile access to tap into Glo's network.

Mike Jitubo, executive director of special projects at Globacom, said that it was a "natural choice" to continue working with Ceragon on the operator's network expansion initiative.

"Our experience and expertise teaches us that it's not just about the radios and antennas but also about lowering our customer's total cost of ownership and facilitating a faster time to new revenue (TTR)," Ira Palti, president and CEO of Ceragon, said in a statement. "With this approach, Ceragon is able to offer operators more capacity under any given network scenario for any network budget."

Ceragon is coming off of an interesting 2011 when it experienced substantial revenue growth, while still incurring a net loss. Revenue totals for 2011 rose to $445.3 million – up 78 percent from the $249.9 million it generated in 2010. Much of that growth was in the fourth quarter of 2011, when its revenue numbers reached $118.5 million.

Ceragon still saw its net income of $14.1 million for 2010 slip to a net loss of $53.7 million, or $1.49 per basic share, in 2011. The company expects its revenue growth to be relatively stagnant in Q1 of 2012 due to "macroeconomic and political concerns [that] weigh on operators' plans in several regions," according to Palti.




Edited by Braden Becker


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