Etherstack signs first Samsung carrier client deal, worth $11.6M

Falls under an agreement between the two vendors made in June 2020.

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Etherstack’s wireless subsidiary has signed a deal worth roughly $11.6 million with Samsung for the provision of network elements to a telecommunications carrier client of the vendor.

Headquartered in Chippendale, NSW, and boasting research and development offices in Sydney as well as London, New York and Yokohama, the wireless technology company specialises in developing, manufacturing and licensing mission critical radio technologies for wireless equipment manufacturers.

According to a statement released via the Australian Securities Exchange (ASX), Etherstack Wireless will be supplying switching software elements, referred to as softswitches, which are usually based in carriers’ virtualised network environments, according to the wireless technology vendor.

The deal, which is for a five-year contract, comprises licence fees, project development revenues and support revenues of US$8.5 million -- approximately A$11.6 million at the time of writing.

The majority of the licence revenues are expected to occur from 2021 to 2023, while support revenues are anticipated to take place in 2022 and earned over three years from the date of delivery.

There is also the potential for an extension for the support part of the deal to take place in 2025, with a minimum timespan of 10 to 15 years for public safety infrastructure contracts.

This deal is the first for Etherstack with one of Samsung’s clients following the wireless technology vendor announcing a global teaming agreement with the vendor for 4G and 5G public safety in June 2020.

In that agreement, the two companies agreed to jointly pursue opportunities to provide mission critical push-to-talk/voice/video (MCPTX) solutions globally in the telecommunications market, with Samsung as the prime contractor.

“Samsung and Etherstack have been working on joint carrier pursuits for MCPTX over the last two years and it is fantastic to notch up our first carrier win with Samsung,” said Etherstack CEO David Deacon.