Net Insight inks $25.63m agreement with Türk Telekom

Net Insight has signed a collaboration agreement with Turkish telecom operator Türk Telekom relating to 5G synchronisation.

Under the agreement, which is worth SEK 220m ($25.63m), Net Insight is initially provided SEK 55m ($6.41m) for product development, as well as an initial order worth SEK 25m ($2.91m) for existing products with delivery starting this year. The remaining orders for an entirely new product for 5G will be delivered towards the end of 2023, with delivery completed in 2026. The solution offers advantages as it is independent of GPS and can provide time synchronisation over existing networks. 5G rollouts can therefore be done without replacing or upgrading existing nodes in the networks, which reduces operator costs significantly.

Commenting on the agreement, Crister Fritzson, CEO of Net Insight, said: “This is our single biggest order ever and an important milestone in the company’s history. We are creating a new business offering with a new product selected by one of Europe’s biggest telecom operators. There is a large total market for 5G synchronization with an estimated future annual value of over USD 1bn.”

Ümit Önal, CEO of Türk Telekom, added: “We see considerable market potential for this innovative solution which will reduce costs and speed up the roll-out of 5G for mobile operators globally. At Türk Telekom, we work hard with the responsibility of leading Turkey’s digital transformation and shaping the future with 5G and new generation technologies. We take an active role in drawing the 5G roadmap in the global arena with our pioneering R&D studies, products and tests for 5G worldwide. This important collaboration agreement with Net Insight fits well with our strategy to innovate and bring new technology to the world.”

Net Insight will develop the product on the foundation of the company’s core technology, competencies and experience in time synchronisation, and combined with Türk Telekom’s expertise and technology adapt it for 5G and future synchronisation requirements.

Fritzon continued: “Once again, we prove our strong ability to transform cutting-edge technology into attractive global products, which is based on our deep technical competence and our knowledge of the market and customer requirements. Net Insight has had a long and rewarding collaboration with Türk Telekom, which has been key to developing the technology and adapting it to mobile operator networks. The collaboration with Türk Telekom enables us to broaden the scope of our business in an area where we have core competencies, time synchronization, and this agreement confirms the technology.”

Extending the operations with a new offering strengthens the company and opens up new markets for Net Insight. Certain resources will be shared, such as administration, logistics and support functions.