Wednesday, June 11, 2008

Two views of a partnership

Alvarion (common 3.4% of portfolio, calls 4.6%) and Nortel entered into a WiMAX partnership, which they announced in a press release this morning. They also held a joint conference call, which I have not yet listened to. The news is boosting Alvarion today, although somewhat modestly. This is perhaps because detractors see Nortel's move as more of a boost to LTE, which Nortel will focus on (as they push their WiMAX efforts to Alvarion). So it will take a while to see exactly how this agreement will affect Alvarion's business, but for now the market is indicating that it is a positive move.