What is the expected revenue from the Tier 1 in India project in the second half of 2022 and beyond
is India right now? And how big can you get next year, I'm hearing some major upgrades coming over the next couple of years?
Charlie Vogt -- President and Chief Executive Officer
Well, as I think, you all are aware, we did announce, I think, two quarters ago that we were awarded at least Phase 1 of a pretty significant Tier 1 in India. We see that opportunity expanding for us. And there's obviously different parts of the network that we participate in from the optical transport side to the OLT to the ONT to the in-home WiFi. And Phase 1 of that was with the ONTs, the second phase of that is OLTs, which comes with a much higher profile and margin profile.
So we certainly are being really thoughtful about the opportunity in India. I mean, it clearly is a country that has opened up for companies like DZS to be able to participate in their aggressive cap and replacement of the China, the former China vendors in that particular region. I think it's important also for investors and shareholders to appreciate we are being thoughtful about it. We're not rushing into India to go chase low-margin deals.
But there are different book ends that come with different margin profiles. Obviously, the ONTs are much lower margin profile. And to be able to complement that with the OLTs and the software attributed to the OLTs is what is in Phase II. So Phase 1 for us is the ONTs Phase 2 is the OLTs and middle mile transport, and that's something that we expect that we will book in the second half of this year and begin shipping in early 2023.
Dave Kang -- B. Riley Financial -- Analyst
Got it. And my next question is your APAC was fairly strong, but your mobile transport continues to be weak. I thought a significant portion of that was mobile. So can you kind of go over that? And what will get the mobile transport get going in the second half and beyond?
Charlie Vogt -- President and Chief Executive Officer
Well, in my comments, I did share with you that we did win a large mobile operator in Europe in Q2. We will begin shipping on that project, which is a high-margin project in Q3 and Q4. We did see, SoftBank drove a lot of our revenue over the last, let's call it, five, six, seven years. And in the first half of this year, they're going through a reevaluation of their next-generation phone-based mobile transport platform that we're working on with them.
And so, the pause that I think you're seeing in some of the mobile transport revenue has to do with where SoftBank is in sort of their Phase 4 of their 5G mobile transport architecture with DZS, something that we anticipate. We will contract on in the second half of this year and begin to ship the next phase of that, which is a multiyear phase starting in '23.
Dave Kang -- B. Riley Financial -- Analyst
Got it. And my last question is regarding U.S. various government funds, such as ARDA, have they been released yet?
Charlie Vogt -- President and Chief Executive Officer
Yes, sure. I mean, we've got a lot of customers that are participating. I mean, I think what we've been articulating and I think it's fair to assess with our three peers in North America. I think for the most part, outside of what we would refer to as sort of new entrants into the traditional regional ILECs.
Most of those funds are flowing to service providers and through to the equipment supplier partners that they have historically been using. Where we've been seeing a lot of excitement, frankly, is a lot of the new fiber overbuilders and some of the utility co-ops who are entering into the market, that gives DZS, frankly, an opportunity to participate where we weren't historically an incumbent.
Dave Kang -- B. Riley Financial -- Analyst
Got it. Actually, one more question because I get this question a lot, is that how solid is your backlog? Maybe can you go over like your contract policies, how much can be cancellable after so many months?
Charlie Vogt -- President and Chief Executive Officer
Well, ironically, we were just talking about this before the call. And I think it speaks volumes of the technology and the relationship
is India right now? And how big can you get next year, I'm hearing some major upgrades coming over the next couple of years?
Charlie Vogt -- President and Chief Executive Officer
Well, as I think, you all are aware, we did announce, I think, two quarters ago that we were awarded at least Phase 1 of a pretty significant Tier 1 in India. We see that opportunity expanding for us. And there's obviously different parts of the network that we participate in from the optical transport side to the OLT to the ONT to the in-home WiFi. And Phase 1 of that was with the ONTs, the second phase of that is OLTs, which comes with a much higher profile and margin profile.
So we certainly are being really thoughtful about the opportunity in India. I mean, it clearly is a country that has opened up for companies like DZS to be able to participate in their aggressive cap and replacement of the China, the former China vendors in that particular region. I think it's important also for investors and shareholders to appreciate we are being thoughtful about it. We're not rushing into India to go chase low-margin deals.
But there are different book ends that come with different margin profiles. Obviously, the ONTs are much lower margin profile. And to be able to complement that with the OLTs and the software attributed to the OLTs is what is in Phase II. So Phase 1 for us is the ONTs Phase 2 is the OLTs and middle mile transport, and that's something that we expect that we will book in the second half of this year and begin shipping in early 2023.
Dave Kang -- B. Riley Financial -- Analyst
Got it. And my next question is your APAC was fairly strong, but your mobile transport continues to be weak. I thought a significant portion of that was mobile. So can you kind of go over that? And what will get the mobile transport get going in the second half and beyond?
Charlie Vogt -- President and Chief Executive Officer
 Well, in my comments, I did share with you that we did win a large mobile operator in Europe in Q2. We will begin shipping on that project, which is a high-margin project in Q3 and Q4. We did see, SoftBank drove a lot of our revenue over the last, let's call it, five, six, seven years. And in the first half of this year, they're going through a reevaluation of their next-generation phone-based mobile transport platform that we're working on with them.
And so, the pause that I think you're seeing in some of the mobile transport revenue has to do with where SoftBank is in sort of their Phase 4 of their 5G mobile transport architecture with DZS, something that we anticipate. We will contract on in the second half of this year and begin to ship the next phase of that, which is a multiyear phase starting in '23.
Dave Kang -- B. Riley Financial -- Analyst
Got it. And my last question is regarding U.S. various government funds, such as ARDA, have they been released yet?
Charlie Vogt -- President and Chief Executive Officer
Yes, sure. I mean, we've got a lot of customers that are participating. I mean, I think what we've been articulating and I think it's fair to assess with our three peers in North America. I think for the most part, outside of what we would refer to as sort of new entrants into the traditional regional ILECs.
Most of those funds are flowing to service providers and through to the equipment supplier partners that they have historically been using. Where we've been seeing a lot of excitement, frankly, is a lot of the new fiber overbuilders and some of the utility co-ops who are entering into the market, that gives DZS, frankly, an opportunity to participate where we weren't historically an incumbent.
Dave Kang -- B. Riley Financial -- Analyst
Got it. Actually, one more question because I get this question a lot, is that how solid is your backlog? Maybe can you go over like your contract policies, how much can be cancellable after so many months?
Charlie Vogt -- President and Chief Executive Officer
Well, ironically, we were just talking about this before the call. And I think it speaks volumes of the technology and the relationship