Comment from CEO
“InCoax is facing a major expansion and through this financing we are establishing a solid foundation to stand on for further penetration of the US market and the growth journey we see ahead of us. As previously announced, we have, over time, deepened our collaboration with Google Fiber and we see clear indications of continued growth in this business. We have also won a first order from a very large US-based Tier 1-operator with whom we also see great growth potential. In addition to financing an increased working capital due to this expansion, we also intend to accelerate our software development to implement more functionality and thereby broaden the number of use cases of our system with operators. In addition to the high level of trust shown by existing major owners, it is also very encouraging that through this financing we strengthen our owner base with another major and long-term owner. All in all, these commitments indicate a very strong confidence in our future growth plan”, comments Jörgen Ekengren, CEO.
About InCoax Networks, “InCoax”
InCoax specializes in the innovation of reusing existing in-building infrastructure for fiber access, providing Multi-Gigabit broadband to the world’s leading telecom and broadband service operators. InCoax has successfully established a partnership with Google Fiber and completed field tests and received an initial order from an American Tier-1 operator, clearly demonstrating the company’s potential. Target markets include US and Europe, markets with growing fiber infrastructure, low household connectivity and high labour costs, implying a huge potential for InCoax’s cost-efficient Fiber Access Extension solutions.
- During 2020, InCoax underwent a strategy change to position the Company more clearly towards system design and solutions for bigger Tier 1 operators. This has resulted in a Master Purchase Agreement (MPA) with Google Fiber Inc., an American national fiber/LAN operator operating in 19 American metropolitan areas.
- In addition to the agreement with Google Fiber Inc., InCoax has after successful field tests received an initial order of SEK 3.5 million in September 2022, on products relating to private single-family homes from an American Tier 1 operator. The Tier 1 operator has a need in the segments of private single-family homes and apartment buildings to connect four million households and 1.6 million households respectively to fiber within the next three to five years. In parallel, InCoax continues discussions with the American Tier 1 operator regarding the last step, productization and commercialization of InCoax’ multigigabit solution for fiber extension in multi-family homes – InCoax MoCA AccessTM 2.5.
- Furthermore, InCoax broadened its offering in September 2021 by launch of Distribution Point Unit D2501, targeting smaller multi-family homes, which increases InCoax’ addressable market. Distribution Point Unit D2501 is currently undergoing field tests at two American operators, in Europe one operator has initiated tests and another has ongoing field tests in four buildings. There are also other operators who have shown interest in this solution, where tests are expected to start in the second half of 2022.