Aviat Networks Sells off WiMAX Business To Canadian firm

In line with previous predictions, Aviat Networks, Inc., a leading expert in wireless transmission solutions, has announced that it has sold its WiMAX business to EION Networks, Inc., which is a privately owned Canadian Company headquartered in Ottawa, Canada. The WiMAX business will be consolidated into a division of the company, EION Wireless, as a result of the sale. EION Wireless, a global provider of broadband wireless products, plans to extend its broadband wireless solutions portfolio with the purchase of this business.

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,” said Michael Pangia, president and CEO of Aviat Networks. “We will work with EION Wireless to ensure a smooth transition for both our customers and employees.” The sale of the WiMAX business to EION Wireless was effective as of September 2, 2011.

Eion Networks said that the purchase of the WiMax division of Aviat Networks includes its StarMAX fixed and mobile base stations, gateways and end-user devices. “This is a big strategic step for Eion, both from the product and customer point of view,” Kalain Kalaichelvan (pictured), chairman and CEO of privately-held Eion said in an interview. “Their portfolio of products really compliments what we are doing because they have 4G (fourth generation wireless) products.

“The second main reason is Aviat sells to Tier 1 and 2 service providers, and we sell to a lot of enterprises … so this can be the springboard for us into launching LTE.” Eion’s upgrade solution to LTE will be ready by next summer, he said. Over the next six to 12 months WiMax providers will want to convert and “we are already in their living room,” Kalaichelvan said.

Four years ago WiMax and LTE (Long Term Evolution) were fighting to be the next generation of wireless broadband technology, promising to offer at least wireline speeds. Fixed WiMax (also known as the IEEE’s 802.16 standard) got off the mark first and has been chosen by a number of carriers to serve small communities. At the time LTE standards were barely set. But WiMax's mobile version (802.16e) was shunned by major carriers in favour of LTE because major equipment makers like Ericsson LM offered a clear upgrade path from the GSM technology used by most leading cellular operators.

In the U.S., WiMax’s biggest supporters, Clearwire and Sprint-Nextel Corp., have signed they will eventually switch to LTE. That has left WiMax operators in a fix, looking for equipment makers who have to face the inevitable: eventually upgrading to LTE. WiMax equipment makers, meanwhile, have faced struggling sales as service providers wonder whether they should invest in the technology. But in some parts of the world – such as emerging countries with very little in the way of phone lines, WiMax makes sense. Which is why 80 per cent of Eion’s sales have gone to countries outside North America, Kalaichelvan said. In Canada it counts only a few oil and gas companies as customers.