Telrad Wins $20m Georgia Contract

Tel Aviv  28th November 2005

Telrad beat Alcatel, TDK and other bidders. The first stage of the contract is estimated to be worth $7 million.

Telrad Networks Ltd. has won a tender by NewNet - Akhali Kselebi Ltd., Georgia’s second largest telephony company, to set up a new-generation VoIP and multimedia network. Telrad beat Alcatel (NYSE:ALA; Paris:CGEN), TDK Corporation (NYSE: TDK) and other bidders. The first stage of the contract is estimated to be worth $7 million, which is expected to rise to $20 million within a year.

Telrad’s system will support two million NewNet subscribers, including 300,000 subscribers in the first stage. Telrad’s Public Networks Integration division wills set up and operate an IP/MPLS voice, data, and video services network. The network will provide an MPLS backbone, software switches, access equipment for triple play applications, and advanced IP services, which will enable NewNet to provide multimedia calls via a customer-centric network.

Telrad will integrate products of different suppliers, including Cisco Systems (Nasdaq:CSCO) and Nortel Networks (NYSE; TSX:NT), as well as Telrad’s own equipment.

The network will initially be deployed in Georgia’s ten large urban districts, including the capital Tbilisi. It will later be deployed in smaller towns and rural areas, until the country is fully covered.

Published by Globes [online] - www.globes.co.il - on November 28, 2005