HT and Ericsson NT released a statement yesterday in which they announced that that they will be working together on the development of a 5G network. Note that this marks the first 5G agreement signed in Croatia by Croatian companies.
HT and Ericsson NT released a statement yesterday in which they announced that that they will be working together on the development of a 5G network. According to the statement, the agreement will make Ericsson NT an exclusive supplier of the radio part for HT’s mobile network until 2024.
Although no amounts were specified, we welcome the agreement as a source of revenue for Ericsson NT for the upcoming 4 years. Furthermore, it opens up new possibilities in times when CAPEX from major Croatian telcoms is expected to decrease as they have all successfully prepared themselves for the unveiling of the 5G network.
As a reminder, since the begging of the year, Ericsson NT took over full responsibility for building and maintaining HT’s telecommunications infrastructure from their parent company. Since Ericsson NT previously acted as a sub-contractor of the global Ericsson, this revenue was recorded under the Ericsson market and ranged between HRK 160-180m every year (in 2019 it a was HRK 188.5m). Now as the company took over the full responsibility on to themselves, the expected contribution to the top line is around HRK 500m or more, however note that the HRK 180m recorded through the Ericsson market will disappear. Still, a nice net increase of roughly HRK 300m can be expected.