Vyyo Inc. and Proxim Inc. announced they will work together to bring wireless broadband connectivity to multidwelling units.
Under terms of the agreement, Vyyo said it will supply its multichannel multipoint distribution service 3.5 GHz and local multipoint distribution service Lite DOCSIS+ equipment, and Proxim will provide its HomeRF-based wireless networking solution, Symphony, to distribute the wireless broadband service to multiple users within a building.
Financial terms of the transaction were not disclosed.
As a result of the partnership, analyst firm UBS Warburg reiterated its “strong buy” rating for Proxim, with a 12-month price target of $63. Proxim’s stock was trading at $43.81 at RCR Wireless News press time.
Proxim, based in Sunnyvale, Calif., will continue to hold a dominant position among integrated broadband access device manufacturers, UBS Warburg said. This is the second agreement for Proxim within the wireless broadband space following its initial collaboration with Adaptive Broadband Inc. in November of last year. At that time, Proxim agreed to integrate its Symphony product with Adaptive Broadband’s AB-Access equipment to also provide wireless broadband access and services to multitenant buildings.
“In our opinion, this announcement illustrates that winners in this space will not be determined by technology/industry standards-instead, we believe the winners will be the companies chosen to partner with operators and vendors,” said analysts at UBS Warburg.
In August, Proxim helped secure a Federal Communications Commission decision that permits the development of wideband frequency-hopping systems operating in the unlicensed 2.4 GHz band. These systems can operate at similar power levels as existing local area network systems, making them more efficient and secure while costing less, Proxim said. The ruling also further aligned the United States with Europe and Japan, both of which already allow wideband frequency-hopping technology.
