Taiwan has long been in growth plans for WiMAX solutions developer Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR), and today the company announced a deal with a Taiwanese telecommunications firm.
Alvarion reported that it signed a contract with VMAX Telecom to deploy Mobile WiMAX in Taiwan, beginning in the Taoyuan and Hsinchu counties.
The deal is worth $12 million in sales for Alvarion in the first phase.
Under the terms of the agreement, Alvarion will provide VMAX Telecom with its BreezeMAX 2500 base station. The new network will enable VMAX Telecom to provide wireless IP services such as voice, data, video and gaming, bringing mobile broadband to Northern Taiwan.
VMAX Telecom CEO Teddy Huang said, "VMAX Telecom strongly believes in WiMAX as the best way to provide our customers the most advanced mobile broadband services available." He added that VMAX would be the first to commercially deploy Mobile WiMAX in Northern Taiwan, and that subscriber growth is expected to reach 500,000 in 5 years.
VMAX Telecom was awarded a WiMAX license by the National Communications Commission of Taiwan in July 2007. Alvarion has made no secret of the fact that it would like to work with at least one or two of the licensees.
Shares in Alvarion rose 7.2% today on the Tel Aviv Stock Exchange (TASE), where its shares have jumped 25.5% so far in 2009.
Published by Globes [online], Israel business news - www.globes-online.com - on January 6, 2009
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