BATM Advanced Communications Ltd (LSE:BVC) said it has won an order for its Edgility virtual networking and edge compute solution from CityFibre (AIM:CFHL), initially expected to be worth US$3.5mln (£3.1mln).
BATM said CityFibre (AIM:CFHL), which is creating the UK’s largest independent network of super-high-speed broadband, will roll out the use of the technology nationally after testing Edgility in a pilot scheme since July.
Edgility devices will replace hardware-based routing equipment on customer premises.
For the initial order, BATM said it will receive recurring licence fees for a five-year period plus hardware sales estimated to be worth a total of US$3.5mln.
BATM said it believes the financial value of the contract will “grow substantially in the near-term” as the volume of licences increases as it foresees the number of deployments expanding to tens of thousands per year.
CityFibre recently raised £4.9bn to finance its full-fibre roll-out to connect 8mln homes, 1.2mln business and public sector premises.
CityFibre chief technology officer David Tomalin noted that BATM was chosen for its “proven track record of virtualised edge device management at scale”.
In a statement, Zvi Marom, BATM’s chief executive, commented: “When it comes to upgrading their networks, organisations are increasingly shifting from hardware-based to software-based solutions to enjoy the significant gains in efficiency as well as reducing their environmental impact.
“The commercial adoption of Edgility by CityFibre is a great validation of our technology, which we expect will lead to further orders from other businesses.”