Aviat Networks, a provider of wireless transmission solutions, announced that it has sold its WiMAX business to EION Networks, a global provider of broadband wireless products.
The WiMAX business will be consolidated into a division of the company, EION Wireless, as a result of the sale.
EION Wireless plans to extend its broadband wireless solutions portfolio with the purchase of this business. EION Wireless works with more than 165 local partners to support its diverse global customer base and provide innovative and reliable solutions.
EION Wireless is betting big on WiMAX business. Recently, the WiMAX Forum announced that WiMAX technology has reached the 20 million global subscriber mark at the end of Q2 2011.
Aviat Networks during the Q4 result announced that the company’s WiMAX assets were $10.8 million.
Aviat Networks’ Q4 FY 2011 revenue was $120.9 million, compared with $107.6 million in the year-ago quarter.
The sale is happening at a time when the WiMAX business is facing slow traction. LTE is considered as the future technology for 4G roll outs.
Five operators in Hong Kong, Japan, the Philippines, Singapore and South Korea have commercially deployed LTE, according to Ovum telco strategy analyst, Nicole McCormick.
Reliance Communications, BSNL, Airtel, Aircel, Tata Teleservices are the leading Indian operators who are keen to plunge into the LTE bandwagon.
In Asia, South Korean operators SK Telecom and LG U+, the largest and smallest of three operators in the market, are the latest operators to debut LTE services on July 1, 2011. Like Japan’s NTT DoCoMo, which launched its LTE platform in December 24, 2010, both Korean operators have moved from ‘unlimited pricing to capped data plans for LTE
Hong Kong operator CSL is offering unlimited data for LTE, but excessive data usage is throttled. In Singapore, M1 is offering free LTE modems to enterprise customers on an existing plan that also has no limit on data usage.
Recently, Infonetics Research announced that in 2010 the WiMAX equipment market grew by 85 percent, and according to market intelligence firm Infiniti Research, the WiMAX equipment market will reach $6.9 Billion in 2014.
Aviat Networks acquired the WiMAX business in 2009 to expand its technology portfolio and capabilities to address opportunities in the wireless broadband and mobility markets.
In May 2011, as part of a company restructuring aimed at reducing costs, streamlining operations, and optimizing the company’s business model, Aviat Networks announced its intentions to sell the WiMAX business for an undisclosed amount.
The sale of the WiMAX business will enable us to better focus our resources and investments on our microwave transmission products, further positioning us for long-term success. We will work with EION Wireless to ensure a smooth transition for both our customers and employees,” said Michael Pangia, president and CEO of Aviat Networks.
Subscriber growth for WiMAX operators continues in all regions as they build their customer bases. There is a strong growth in the U.S., the Indian sub-continent, and Latin America. With the levels of operator activity and device ecosystem growing, WiMAX subscribers will surpass 100 million by the end of 2015, according to Infonetics Research.
Hope WiMAX vendors will find strong revenue streams. Currently, LTE is eating into their revenues. Many big vendors are revising their WiMAX business strategy.
By Baburajan K