UPDATE 2-Sandvine gets contract from Japan's NTT, shares jump

* Financial terms of deal not disclosed

* Shares rise 13 pct (Recasts; adds details, analyst comments, updates share movement)

By Koustav Samanta

BANGALORE, Feb 1 (Reuters) - Network equipment maker Sandvine Corp (SVC.TO) received a contract from Japan's NTT Communications Corp to deploy its Policy Traffic Switch (PTS) on NTT's high speed network in Japan, sending Sandvine's shares up as much as 13 percent.

The PTS platform provides broadband and wireless network operators with services like capacity planning and quota management.

Financial terms of the contract were not disclosed.

"Based on our back-of-the-envelope analysis, we believe this contract could be worth in the range of C$20 million to C$40 million over a three-year deployment period," Canaccord Adams analyst Eyal Ofir said in a note to clients.

Ofir, who has a "speculative buy" rating on the stock, said he expects Sandvine to return to profitability, and have a strong 2010 in terms of revenue growth.

The company did not provide any specific revenue expectation from its new contract.

"Sandvine will experience continued momentum in the wireless market upgrade cycle, with a number of clients deploying its next-gen product, ongoing diversification of its revenue, and finally, potential conclusion to anticipated FCC guidelines that will kick-start U.S. demand," analyst Ofir said.

Shares of Waterloo, Ontario-based Sandvine were up 12 percent, or 16 Canadian cents, at C$1.46 Monday afternoon on the Toronto Stock Exchange. Earlier the day, they touched a high of C$1.47. (Reporting by Koustav Samanta, additional reporting by Abhiram Nandakumar; Editing by Unnikrishnan Nair)