Australian telecom news site "Commsday" reports that reports that WiMAX solutions developer Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR) will participate in a South Australian state government project to provide a new fixed WiMAX deployment across metropolitan Adelaide.
Adelaide Internet portal Adam Internet won the tender for the project. The South Australian state government will provide $3 million in financing for the project, and Adam Internet will provide $12 million. The network will be deployed over the next fifteen months.
Adam managing director Scott Hicks said, "We chose the Alvarion product because they have over five deployments where they’ve done this over the exact same terrain, demographic material... the same spectrum, even."
The deal could be worth several million dollars for Alvarion.
Alvarion may benefit in the coming months as governments invest in bringing broadband to remote regions. For example, the Obama administration in the US has allocated more than $7 billion for this purpose.
In a recent interview with "Globes", Alvarion chairman and CEO Zvika Friedman said that the potential for the company was considerable. The US government plan is the best known, but other governments also want to boost their economies by investing in telecommunications infrastructure. The Australian federal government has the largest planned investment, which could total billions of dollars.
Alvarion's share closed at $4 on Nasdaq yesterday, giving a market cap of $248 million. The share fell 0.9% in morning trading on the TASE today to NIS 15.07.
Published by Globes [online], Israel business news - www.globes-online.com - on August 17, 2009
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