WiMAX developer Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR) will provide its 4Montion mobile WiMAX solution to Clearwire Corporation (Nasdaq: CLWR) subsidiary Clearwire International LLC for an initial deployment in Spain.
Clearwire plans to offer 4G services in selected Spanish urban areas during 2010. Services will include high-speed internet, VoIP, and video to consumers and businesses.
Alvarion did not disclose the size of the deal, which is believed to be small. However, the importance is the customer, Clearwire.
Leader Capital Markets analyst Eran Jacoby said, "If the largest WiMAX venture in the world today is Clearwire's project in the US, then it's a good thing to hook up with its subsidiary in Europe. The main question that arises from this contract is whether it will open doors for Alvarion to participate in Clearwire's big project in the US."
Alvarion CEO Tzvika Friedman said, “As we become part of the Clearwire ecosystem, we look forward to supporting Clearwire in accelerating innovation and ultimately redefining the value of the mobile Internet. We also hope to leverage this partnership with future Clearwire service provider partners."
Leader's Jacoby added, "Every contract in these times is important, and shows that the industry is alive and kicking."
Jacoby gives Alvarion an "Outperform" recommendation with a target price of $7, nearly 75% above yesterday's closing price on Nasdaq of $4.03. The share rose 2.8% in morning trading on the TASE today to NIS 15.64.
Published by Globes [online], Israel business news - www.globes-online.com - on October 6, 2009
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