Zacks_Analysts' Blog : Novatel Launches MiFi Server - Analyst Blog

Novatel Wireless Inc. (NVTL), a leading provider of wireless data access cards and embedded solutions, has launched its MiFi Web server Common Gateway Interface (CGI) for the MiFi Developer Program. MiFi line of products, the industry’s first Intelligent Mobile Hotspot, is getting increasing market traction.

MiFi is an ultra-portable wireless device, creating an environment of high-speed internet connectivity that can be easily shared by multiple users using up to five Wi-Fi devices. Novatel has developed MiFi for both EV-DO and HSPA standards.

 

The release of this interface will enable software developers to use MiFi’s open CGI to access the on-board processing capabilities of this intelligent mobile hotspot. Novatel has decided to develop an open platform ecosystem based on MiFi technology for applications and services delivery.

The company is working with Alcatel-Lucent (ALU) to integrate its Nonstop Laptop Guardian platform on the HSPA version of MiFi. Novatel is also commercializing the first phase of its own content delivery portal supported by the MiFi platform. MiFi devices will contain this intelligent server application.

This development will include portals providing customized content. Novatel will generate recurring revenue by selling mobile content to its carrier customers.

 

Novatel has begun shipment of MiFi to Verizon Wireless (VZ), Telefonica SA (TEF), and Sprint-Nextel (S). CradlePoint Technology, a provider of 3G and 4G networks solutions, announced that its routers have become MiFi compatible. Novatel has also entered into an agreement with Moblix to sell MiFi products in Central & Eastern Europe, and the Middle East using Moblix’s reseller channel.

 

We believe this unique product line will give Novatel a competitive advantage over Sierra Wireless (SWIR) and Kyocera Corp. (KYO) in its traditional mobile data access card market. This is particularly important as several large telecom equipment makers like Qualcomm (QCOM), L.M. Ericsson (ERIC), and Huawei.

Technologies have entered the mobile computing market with advance chipsets that combine broadband modem technology compatible with high-speed 3G networks. We reiterate Buy recommendation for Novatel Wireless.