WiMAX solutions developer Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR) may be poised for a boost, following yesterday's announcement by Gopal Das, the chairman and managing director of India's largest 3G mobile carrier, Bharat Sanchar Nigam Ltd. (BSNL), that it will deploy in 760 cities nationwide this fiscal year. Alvarion has been in talks with BSNL to supply equipment to the company, so the announcement could raise expectations at Alvarion's officers and shareholders.
If Alvarion actually supplies equipment for BSNL's deployment, the project could generate at least several tens of millions in revenue for Alvarion.
Alvarion has marked India as one of its main growth markets. During the conference call following the publication of its financial report for the first quarter of 2010, CEO Eran Gorev said that the could benefit from opportunities in the Indian market, and that tenders there could result in "substantial business and revenue".
The Indian government wants nationwide broadband connection. In November 2010, BSNL received a $524 million government grant to deploy a nationwide mobile WiMAX solution.
Alvarion's share closed at $2.17 on Nasdaq on Friday, giving a market cap of $135 million. The share price rose 0.3% by mid-afternoon on the TASE today to NIS 7.88.
Published by Globes [online], Israel business news - www.globes-online.com - on January 23, 2011
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