Alvarion (Nasdaq: ALVR) today announced that it signed a strategic agreement with Intel to work together to incorporate new Intel chips into its upcoming line of next generation broadband wireless access (BWA) systems.
Alvarion’s Nasdaq shares were up 7% at $4.90 in early trading on Wednesday, as investors reacted to the news.
Alvarion noted that Intel was announcing today its intention to develop an IEEE 802.16a-compliant chip. Working in close cooperation, Alvarion is now developing next generation products based on Intel's chips, with the intention of being one of the first to launch a WiMAX-certified system.
Alvarion says WiMAX promotes a new standard for last-mile wireless technologies designed to provide broadband connectivity to homes, businesses and Wi-Fi (Wireless Fidelity) "HotSpots", competing with today's wireline DSL, cable, and T1 broadband access systems.
Until now, the uptake of BWA technologies has been restrained by the lack of interoperability between the equipment of the industry's many manufacturers and the availability of standards-based, volume components, says Alvarion. Led by the initiative of Wi-Fi and BWA component suppliers like Intel and Alvarion, interoperable WiMAX-certified systems built upon standards-based silicon will help broadband wireless access to achieve its full mass-market potential as a price-competitive and flexible alternative to wired broadband solutions, the company says.
"WiMAX will become the next major trend in wireless connectivity - a natural step to follow the WiFi phenomenon -- and represents an easy and affordable way to provide broadband to homes, businesses and Hot Spots," said Alvarion CEO Zvi Slonimsky. "Alvarion recognizes these needs and has been a pioneer in championing the 802.16a standard for the past two years. We congratulate Intel on leading the revolution with standards-compliant silicon, which will be used as the basis of our next generation line of leading, WiMAX-Certified BWA products."
Published by Globes [online] - www.globes.co.il - on 9 July, 2003