Alvarion Scores Major WiMAX Win in the US

Open Range Communications began moving forward with its plans after receiving
funding of $374M earlier this year to build out its network – including a $274
loan from the USDA’s Rurual Utilities Service (RUS) and $100M from One Equity
Partners.  The funds received from RUS are from its annual re-reoccurring
program and separate from the US Broadband Stimulus Funds being released later
this year.  The company plans to begin deploying the network in Q3 with the
first services offered in Q4 this year. 

Open Range plans to use WiMAX technology to deliver broadband services to
un-served and underserved communities in America – offering portable and
eventually mobile voice and internet services to its planned coverage areas
including western states California, Colorado and Nevada; Midwestern states
Wisconsin, Illinois, Indiana, Ohio and Nebraska; southern states Arkansas,
Alabama, Florida, Georgia and South Carolina; and eastern states Pennsylvania,
New York, New Jersey and Delaware. 

"We are excited that we are able to be involved in such a visionary program that
can bring broadband services to un-served and underserved areas to the rural
US," said Greg Daily, President for Alvarion North America.  "You are
looking at a 4G state-of-the-art network that is going to roll into rural
America, similar to a metropolitan area and frankly, better than a lot of
metropolitan networks."

The network will be built on Alvarion’s WiMAX Forum® Certified? 802.16e
BreezeMAX® solution utilizing spectrum in the upper 2.4GHz ATC band, based on an
arrangement with mobile satellite and data provider Globalstar.  Last
November, Globalstar received an Order and Authorization ruling from the FCC
allowing Globalstar’s spectrum to be used for Ancillary Terrestrial Component (ATC)
services in the US.

"Its a ground breaking project from many perspectives," said Daily.  "In
addition to our own RAN (radio access network) solutions and CPE (customer
premise equipment), we are also integrating the backhaul, IP core and ASN
gateway and AAA server functionalities.  In terms of the network build-out,
we are the lead system integrator."

The deal reflects a major milestone for Alvarion and perhaps offers a glimpse of
the types of deals to come.  For the past 18 months, the company has been
signing-up smaller turn-key projects including ICE in Costa Rica and VMAX in
Taiwan, but this one is unprecedented in terms of size and scope.  Open
Range reflects the second service provider for Alvarion that has received Rural
Utilities Services (RUS) funding.  In April, Main Street Broadband
announced that it had selected to deploy Alvarion equipment after securing $34M
in RUS funding.

The announcement sends a strong signal for the overall wireless broadband
industry and WiMAX technology in particular.  With the first Notice of
Funds Availability (NOFAs) from the Broadband Stimulus Funds due out at the end
of this month and subsequent release of funds later this year, I’m sure we can
expect to see more of these deals in the near future.