Major Contract Win For Avanti Communications
Edison | May 09, 2016 07:43AM ET
Avanti Communications Group (LON:AVN) has announced a major new cellular backhaul contract with EE in the UK, demonstrating continued growth in this important segment of demand.
The upcoming Q3 trading statement will provide an opportunity for Avanti to update and reassure the market that it remains on track to deliver on its plans.
As this becomes increasingly evident, we would expect the shares to progressively reflect the potential of the cash-flow based valuations, which suggest substantial current undervaluation, with further upside potential as risk retires over time.
$29m UK cellular backhaul contract win with EE
Avanti has announced that it has won a major cellular backhaul contract with EE worth an initial $29m, with options to double the capacity. Cellular backhaul provides connectivity and network resilience to remote locations.
Under the contract, Avanti will connect a large number of static and mobile sites to the EE network in the UK, using capacity on HYLAS 1 and HYLAS 2. The contract is multiyear and provides validation for the use of Avanti’s Ka-band network for the provision of cellular backhaul services, and the growth of the backhaul segment.
The first backhaul contract with Vodafone was signed in February 2014, and EE now adds to a growing list of high-quality customers with increasing backhaul demand driven by 4G network investments.
To read the entire report, please click on the PDF file below.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.