WiMAX solutions developer Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR) won a contract to take part in a major US wireless broadband deployment, spanning 17 states and reaching 6 million people.
Alvarion said the deal is worth $100 million over five years. However, market sources estimate it may reach as high as $150 million. It is the largest contract in Alvarion's history.
Shares in Alvarion jumped 15% on Nasdaq yesterday, to close at $3.61, giving it a market cap of $223.63 million.
Alvarion announced that it was selected by US broadband wireless operator, Open Range Communications Inc., for the largest Rural Utilities Service (RUS)-funded deployment so far in the US. The network will span 17 states, 546 rural communities, and reach up to 6 million people.
With the new broadband wireless network, Open Range will begin offering 4G services to un-served and underserved customers across rural America in the fourth quarter of this year. Alvarion will provide radio access equipment, customer devices (CPE) and systems integration for Open Range’s broadband wireless network.
Alvarion president and CEO Tzvika Friedman said, “Open Range’s vision to connect rural America will stimulate local development for many rural communities across the US."
Open Range founder and CEO, Bill Beans Jr. said, “Open Range’s unique business model focuses on delivering wireless high-speed Internet and voice services to un-served and underserved communities.”
Open Range uses WiMAX technology to deliver wireless broadband to un-served and underserved American communities. The firm plans to deliver portable and eventually mobile voice and Internet services to customers within its WiMAX footprint. p>Alvarion has reported five deals in June, including the current one. It recently reported a deal in Taiwan, and earlier reported deals in Nigeria, Norway, and Papua-New Guinea.
Alvarion has an extensive WiMAX customer base and over 250 commercial deployments around the globe.