Ceragon wins Telefonica deal

Ceragon Networks Ltd. (Nasdaq: CRNT; TASE:CRNT) will supply Telefónica SA (NYSE; Euronext; IBEX: TEF; LSE: TDE; DAX: TNES; TSE: 9481) with microwave backhaul solutions for wireless communications between a network's base stations and its main routers. The company did not disclose the size of the deal, but source believe that it is substantial.

Telefónica will initially order Ceragon systems for networks in Chile, Panama and Venezuela, where the company has 25 million subscribers. The company operates in 25 countries and has 295 million subscribers. Ceragon will supply its FibeAir IP-10 solutions that offer up to 1 Gbps per radio-frequency channel.

Ceragon president and CEO Ira Palti said, "As the rollout of higher capacity networks intensifies worldwide, global operators such as Telefónica must be able to service new subscribers quickly and efficiently."

Telefónica technology director Cayetano Carbajo said, "Ceragon solutions offer a good fit for our microwave backhaul needs. Their solutions provide more capacity and a high ROI - interesting functionalities as we continue to roll-out higher speed, higher capacity 4G/LTE mobile networks."

Ceragon acquired Norway's Nera Networks AS for $48.5 million. Nera handles Ceragon's operations in Latin America, which the company considers a growth engine.

Ceragon's share price rose 5.4% by early afternoon on the TASE today to NIS 34.56, after closing at $8.59 on Nasdaq on Friday, giving a market cap of $303 million.

Published by Globes [online], Israel business news - www.globes-online.com - on February 21, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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