Harmonic Inc. (HLIT) announced that it has secured a significant broadband upgrade contract with Telia Norway, the country’s second‑largest telecom operator. The deal will replace Telia’s aging end‑of‑life routers with Harmonic’s cOS virtualized CMTS platform, enabling the operator to deliver higher‑speed, more reliable connectivity across Norway.
The new deployment will be integrated into Telia’s Distributed Access Architecture, allowing the carrier to reduce hardware footprint, lower power consumption, and accelerate its migration to DOCSIS 3.1. Harmonic’s cOS platform, which already powers roughly 35 million connected modems worldwide, will provide Telia with real‑time analytics, automation and spectrum‑efficiency tools such as the Beacon ISM application, positioning the operator for future DOCSIS 4.0 upgrades.
Harmonic’s recent financials show a 27.3% year‑over‑year decline in Q3 2025 revenue to $142.4 million, driven largely by a shift in customer deployment timing as the industry transitions to Unified DOCSIS 4.0. Despite the revenue dip, the company maintained healthy gross margins of 54.4%, up from 53.8% in the prior quarter, thanks to cost controls and a favorable mix of high‑margin broadband contracts. The Telia contract adds a new recurring revenue stream and signals that Harmonic’s platform remains in demand among large operators, potentially opening doors to other Nordic and Scandinavian carriers.
CEO Nimrod Ben‑Natan said the 2025 “transition year” has been challenging but that the company expects to return to growth in 2026. He highlighted the Telia deal as evidence that Harmonic’s virtualized solutions are still the preferred choice for operators modernizing their networks, and he noted that the company is actively pursuing similar opportunities in the region.
The contract underscores Harmonic’s dominant position in the distributed access market, where it holds 62% of the DAA share and 98% of the virtual cable modem termination system market. As the broadband industry moves toward DOCSIS 4.0 and fiber, Harmonic’s early adoption of virtualized platforms gives it a competitive edge. The Telia partnership not only strengthens Harmonic’s European footprint but also reinforces its strategy to capture additional revenue from operators upgrading to next‑generation broadband technologies.
Overall, the Telia deal represents a strategic win for Harmonic, adding recurring revenue, expanding its presence in a key European market, and reinforcing its leadership in virtualized broadband solutions. The company’s strong gross margins and management’s confidence in a 2026 rebound suggest that the contract will help offset recent revenue declines and position Harmonic for future growth.
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