About a week after signing the largest deal in its history, WiMAX systems developer Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR) has signed an agreement to deploy a mobile WiMAX network in Italy.
Italian telecommunications company Aria will deploy a mobile WiMAX network, at the 3.5 GHz frequency, throughout Italy. Aria will use Alvarion’s 4Motion Mobile WiMAX solution in the network, which will reach all 21 Italian regions.
Although Alvarion did not release the dollar value of the deal, market sources estimate it at $20 million, over three years.
Alvarion has signed six contracts since the beginning of the month. The company has an orders backlog of over $100 million.
Oscar Gruss analyst Jonathan Kreizman told "Globes", "The WiMAX market is built on two pillars. One is small contracts, mainly in developing markets, and the second is larger contracts which are found in more developed markets. Until today, Alvarion had six large contracts, and today's contract is the seventh. The US deal last week changed things for the company, because it placed it on the map. It was strong in small to medium contracts, and the large contract in the US opened the door for big contracts; we see proof of this today, with the notice of the deal in Italy.
"It is very likely that we will again see forecasts being raised for Alvarion in the days ahead."
Last week, Alvarion reported a US deal worth at least $100 million, the largest in Alvarion's history.
Alvarion president and CEO Tzvika Friedman said, "We are pleased to be selected for another large WiMAX project through our partnership with Aria, one of Italy’s leading telecommunications providers. This contract confirms Alvarion’s Mobile WiMAX solution as the most advanced solution in the market, and our leading position as a long-term partner for WiMAX."
Published by Globes [online], Israel business news - www.globes-online.com - on June 23, 2009
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