Luleå 2026-05-29 — Effnet AB, a subsidiary of Effnetplattformen Holding AB and the premier provider of header compression software for wireless and fixed networks, announces that it has agreed with one of its long-term customers of Header Compression software to expand the commercial terms of the agreement following acquisition of the customer by a major Open RAN operator.
Initially the customer licensed the software for use in its 4G technology-based Radio Access Network (RAN) and later expanded the license to include the use in its 5G technology-based RAN. Following the recent acquisition of the customer by a major Open RAN operator, the license is being converted into a royalty-bearing license, generating recurring revenue for Effnet. In addition, the customer has agreed to pay royalties applicable retroactively since the acquisition, which is expected to contribute positively to the revenue in Q2 2026.
“This development reflects the long-term value and robustness of our technology and licensing strategy,” said Aniruddha Kulkarni, Managing Director of Effnet AB. “The initial agreement was structured to scale with our customers’ growth and industry consolidation. The transition to a royalty-bearing model validates our strategy, strengthens our recurring revenue as well as demonstrates both the durability of our partnerships and the growing demand for our software.”
Effnet’s Header Compression technology is deployed worldwide in cellular/mobile, satellite, industrial, defence, enterprise and other communications products and markets. The software is standards compliant with IETF and 3GPP specifications (3G/4G/5G) as well as proven interoperable. It is secure, feature-rich and widely deployed.