> looks impressive is is?There is also a bit in the weekend...

> looks impressive is is?

There is also a bit in the weekend edition, pg 31. The AFR says the agreement could add as much as $100 million to $200 million to revenues between 2012-13 and 2014-15.

I guess, I'm cautious with NTC - what's the saying once bitten, twice shy. They seem to get significant deals, which sometimes are overstated and often erode away to nothing.

I doubt NetComm is making this product, but rather buying it from an OEM in Taiwan. This is similar to the Telstra deal where the 3G9WT/3G9WB was re-badged. In that case I believe NTC had to shore up some bridging finance to pay for the goods in advance (normal for China/Taiwan manufacturers) and then wait standard terms after delivery for payment from TLS - and all during the first GFC when banks didn't like lending.

It's probably almost the same this time round. The risks are that they will probably had to get finance to pay for these units in advance. Financial markets are more volatile, there are currency risks (traditionally goods were paid in USD, but I wonder if this will change), large wage inflation in China/Taiwan and their third party will have to be able to deliver the goods.

The official press release doesn't mention numbers (NTC never do!) and it only says the Ericsson has "selected" NTC to provide fixed wireless CPE.

I doubt Ericsson will put all it's eggs in one basket, so there are probably other suppliers. "Selected" probably means there is no contract in place let, but Ericsson have tested a sample product and is happy with it's interoperability with their own base terminal stations.

In all, the announcement is certainly very positive but I just wouldn't get my hopes up too high about the volume in turnover. Either that, or there is little profit margin in it.