Ceragon to lead 4G network deployment in Indonesia

Ceragon Networks Company has been selected to provide its wireless backhaul platform as the basis of LTE communication network deployment in Indonesia. The network is part of a wider government project to broaden internet access to rural areas in the country. As optic fiber infrastructure is lack in these areas, access to telecom services is based on wireless solutions and satellite communication.

Ceragon will be the prime vendor of this ambitious project, and will also be in charge for the network design and will lead the project management. Indonesia is a Muslim country, holding no formal relationships with Israel, though this is not the first Ceragon’s project in this country.  

Indonesia’s population is about 275 million people, and being composed of more the 16,000 islands – many rural areas cannot benefit from the advantages of the internet. According to Statista report, internet usage rate in Indonesia is 70%. In the Economist Intelligence Unit 2020 Report, Indonesia was ranked only 57th out of 100 in the Internet Accessibility Index. Back in 2014, the government launched an ambitious project aimed to provide broadband internet services to rural areas, but the implementation of this project is very slow.

Headquartered in Tel-Aviv, Ceragon develops wireless back-haul infrastructure solutions. Its flagship product is FibeAir IP-20 Assured Platform, that operates at every microwave and millimeter-wave band to match the requirements of diverse network scenarios. It is based on Ceragon’s multi-core radio technology to enable high-capacity and high spectral efficiency microwave and millimeter-wave operations.

 

Delay in Orders From India Hit Ceragon

Further delays of orders from India caused a reduction of approximately $20 million in the expected revenues Ceragon Networks. The company revealed that the orders, which the company had expected to be able to recognize during the second quarter of 2019, are now expected in the third quarter. As a result of the delay, approximately $20 million of revenue was pushed out from the second quarter.

“The remainder of Ceragon’s global business was slightly better than management’s expectations during the quarter,” the company said in a press release. Ceragon is currently estimates that its second quarter 2019 results be $71 million to $74 million. “We received one of the smaller orders from India in the last few days, and we expect to receive the other, larger orders in time to recognize the related revenue during Q3 and Q4,” said Ira Palti, president and CEO of Ceragon (photo above).

“These orders are part of an ongoing 4G expansion and densification effort in India that we have been supporting for the past 5 years. The reasons for the delay relate to customers’ internal processes, and the aggregate value of these orders has remained the same since we first began working on the details. Since we don’t expect an acceleration of the deployment schedule, the delay is expected to roll through the remaining quarters of 2019 and push a total of approximately $20 million of revenue related to India from 2019 into 2020.”

Ceragon provides wireless backhaul solutions for mobile networks. Following the announcement, the company’s stock in Nasdaq dropped 9.8%, and it is valued at Market Cap of $220.4 million.