Lite Access Technologies Inc. (CNSX:LTE) shares advanced by 5% on Monday after the company said it received the first purchase order valued at 2,005,877 South African rand (US$132,575) for its proprietary Lite X Tend solution from Vodacom, South Africa.
Although the initial purchase order will provide product to connect 1,125 homes, the overall operation undertaken by Vodacom amounts to a huge 270,000-homes, which is expected to be completed within the next three to five years. The company anticipates that it will receive further purchase orders as Vodacom has indicated that it will use the Lite X Tend solution for this aggressive fibre-to-the-home (FTTH) rollout.
The integrated fibre optic solutions provider said the deal came through the company's certified sales and installation partner, Brite Access (Pty.) Ltd., formerly known as Nulani (Pty.) Ltd.
Vodacom’s (JSE:VOD) parent is the UK’s Vodafone Group PLC (LON:VOD).
This order includes the use of a specially-designed home-drop solution, which was a collaborative design by the two companies and manufactured exclusively by Lite Access Technologies. Vodacom, South Africa, has both approved and standardized on the Lite X Tend solution for last-mile connectivity as it reduces significant costs and complications associated with last-mile home connections.
The Lite X Tend solution was designed to alleviate technical issues associated with last-mile home connections. Due to the design and construction of the technology, the need for skilled fibre optic splicers and technicians is now no longer required and, in fact, enables do-it-yourself homeowner installations. Current competitive offerings still require technicians and fibre optic fusion splicers to complete installations thus adding unnecessary costs and increased time to deployment for last-mile home connections.
"Necessity has always been a key driver of innovation. We are exceptionally pleased that, working with our new partners at Brite Access to solve the challenges faced by Vodacom, South Africa, we have been able to create together the revolutionary Lite X Tend last-mile solution,” said Mike Plotnikoff, chief executive officer of Lite Access.
“Now, for the first time in our industry, and without the need for the specialized splicing expertise normally required, a home or building owner can install where they like, how they like and have total control of the installation."
Plotnikoff further added: "Importantly, the fibre optic boom is in its early stages and this new product gives Lite Access a significant competitive advantage in the vast market of last-mile initiatives planned around the world. We have already seen significant interest in our Lite X Tend solution outside of South Africa and fully expect this offering to become a cornerstone of our product portfolio."
Brite Access managing director and founding member, Ettienne Knipe, commented: "South Africa and Africa are virgin territories wanting to adopt innovative technologies from First World countries. Our partnership with Lite Access is a prime example of this as South Africa and Africa jump right to the digital age."
See Lite Access video broadcast by Proactive Investor earlier.
Lite Access shares were up 5% at C$1.68 on Monday.