Ethernity Networks (ENET ) has signed a contract with a well-established international wireless connectivity vendor following successful testing of the group’s UEP-20 product.
The Group, which supplies data processing offload solutions on programmable field programmable gate arrays, secured the contract win after its Universal Edge Platform (UEP-20) product which has wireless bonding technology was successfully tested.
The Company explained to investors that this latest contract builds on its successful Indian OEM contract in 2020, as the firm progresses its transition to a system solutions provider.
The contract win includes an initial committed order for $0.93 million with the majority of the revenue accruing in 2022 and with additional orders anticipated thereafter, it explained.
Based on the customer's forecast estimates of deployment, this contract could lead to additional annual revenues up to $1.0m in 2022 and further growth subsequently.
Under the terms of the agreement, Ethernity will supply its next-generation UEP-60 product as a system-on-module integrated within the microwave vendor's enclosure. This includes using UEP-60 as a microwave/mmWave Indoor Unit router module with integrated wireless bonding.
The Group explained that the product will connect multiple wireless links to provide 20Gbps data transport over wireless connections, with the expectation being that the majority of the product's deployments will be for 5G distributed unit connectivity with 25G interfaces.
Shares in Ethernity Networks have increased by over 13% in value since the beginning of 2021. The stock was trading 6.25% higher during the late morning at 43p following the news.
Ethernity said it anticipates expanding its business with the same vendor with other product offerings while the group is already in discussions with other businesses for its system.
Ethernity said the modules will integrate the group’s newly patented wireless bonding technology. It explained that this maximizes the transmission's efficacy using network functions such as load balancing and enables wireless transmission over the standard network.
Regarding the Ethernity Networks’ wireless bonding technology, Roy Chua, Founder and Principal at AvidThink, an independent research and analysis firm, recently commented:
"With the strong market interest in open RAN architecture for public and private 5G deployments, Ethernity's technology that increases efficiency and resiliency for mid haul and backhaul microwave links provides options for wireless service providers. Particularly, in markets where fiber build-out is slow or cost-prohibitive, such flexibility is valued."
Ethernity’s Chief Executive, David Levi said: "This is yet another step in Ethernity's progression from IP licensing deals to delivery of complete system solutions. It confirms that our UEP router platform is an attractive offering to the industry and lays a solid foundation for additional opportunities within the backhaul and midhaul 5G connectivity market.”
He added, “We are very pleased with the direction we are headed and the positive response we have received from the marketplace for our routing platform with integrated bonding."
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