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July 6, 2009
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Good news is continuing for Alvarion Ltd. (ALVR), a Tel Aviv, Israel-based pure-play WiMAX service provider. Recent rumors within the broadband industry suggest a deal between Alvarion and Nokia-Siemens Network (NSN) for customer WiMAX deployment.
NSN is a joint venture between Nokia Corp. (NOK) and Siemens AG (SI). According to industry sources, NSN has taken a strategic decision to shift its focus to other next-generation (4G) wireless technologies like LTE and HSPA+.
However, in order to offer a bunch of 4G networks to its customers, NSN has decided to keep WiMAX in its portfolio and will outsource this technology from specialist WiMAX developers. Alvarion appears to be the most probable candidate.
The agreement will be a boon to Alvarion if it materializes, especially after its failed agreement with currently bankrupt Nortel Networks.
During June 2009, Alvarion received approximately $150 million of new orders for its industry leading BreezeMAX platform. This includes a contract value above $100 million from Open Range Communications Inc. over five years as part of The U.S. government stimulus plan for rural broadband expansion. This is the single largest contract win in the company's history.
Alvarion has more than 250 commercial WiMAX deployments, with a diversified geographic reach in 30 countries. This includes more than 60 deployments in Africa, 40 in Latin America, 25 in North American and over 35 in Western Europe . Eastern Europe has over 60, networks under development.
The company has initiated an effective supply-chain management system supported by a list of more than 200 global partners which include original equipment manufacturers, distributors and resellers. We reaffirm our Buy recommendation for Alvarion.
Read the full analyst report on "ALVR"
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