On Friday, Ericsson NT announced that it signed a contract for the design and construction of the NGN aggregation network – Eastern Croatia.
On Friday, Ericsson NT announced that it has signed a contract for the design and construction of the NGN aggregation network – Eastern Croatia. According to the Company press release: “Ericsson Nikola Tesla d.d., on behalf of the economic consortium in which it participates with companies Ericsson Nikola Tesla Servisi d.o.o. and Supra Net d.o.o., has signed a contract for the design and construction of the NGN aggregation network – Eastern Croatia with the company Odašiljači i veze d.o.o. in the amount of EUR 52,019,105.00 excluding VAT”.
Ericsson NT further noted that the design and construction of the NGN aggregation network – Eastern Croatia is part of the construction and national broadband aggregation infrastructure of the next generation (Next Generation Network – NGN). The project consists of 6 transition nodes (Bjelovar, Kutina, Virovitica, Slavonski Brod, Vinkovci, and Osijek), each of which is a separate functional unit covering a certain area, and will enable smaller towns and rural areas to access high-speed network.
This is the latest in a series of announcements done by Ericsson NT, just a day before this announcement they also announced that Hrvatski Telekom and Crnogorski Telekom have agreed to cooperate on the implementation of the dual-mode 4G/5G network, although no concrete details were given. If you would like to read more about this news in particular, click here.
Despite these positive developments, Ericsson NT’s share price has been under pressure during 2023. Even though the Company recorded improvements in its fundamentals, it was still under pressure due to a part of its business being in Belarus/Georgia, combined with the fact that its mother company, Ericsson, also recorded share price pressure. As such, the situation isn’t specific to just Ericsson NT. On a YTD basis, the Company’s share price has declined by app. 13% as a result.
Ericsson NT, CROBEX10 share price performance (2023 YTD, %)
Source: Bloomberg, InterCapital Research