A major contract from multichannel multipoint distribution services provider WorldCom Inc. boosted the bottom line of network equipment manufacturer Vyyo Inc. amid speculation the wireless broadband market is slipping slightly.
WorldCom selected Vyyo to provide hubs and modems for its soon-to-be nationwide MMDS network. The company’s first commercial launch took place Nov. 15 in Memphis, Tenn., and plans are in motion for service launches in 30 more markets by the end of next year. Terms of the deal were not disclosed.
“WorldCom conducted a thorough evaluation of competitive systems before determining to endorse our technology,” said John O’Connell, Vyyo’s chief executive officer.
“On a purely financial point of view, this will help us meet our objectives. It gives Vyyo a lot of credibility,” said Arnon Kohavi, senior vice president of strategic relations for Vyyo.
Vyyo’s wireless broadband access system consists of wireless hubs located in the base stations and wireless modems that connect to a subscriber’s PC or local area network. The system is based on DOCSIS, which Vyyo said it adapted to create DOCSIS+ for wireless environments. It also supports both multicell and supercell configurations, both of which WorldCom intends to use, according to analyst firm Tucker Anthony Capital Markets.
“Initially in the U.S., we expect to see supercell systems establishing a national footprint for MMDS service. Multicell systems can develop a foothold as well, but thus far in North America, supercell sites are the only ones up and running,” Tucker Anthony said.
Sprint Corp., the other major MMDS provider, has used hybrid and supercell systems.
WorldCom, in part, chose Vyyo because its equipment provides a clear migration path from existing to future technology, Kohavi said. This flexibility and the endorsement from WorldCom should keep Vyyo intact as other wireless broadband companies disappear from the radar screen.
“Wall Street sometimes tends to send evaluations very high and then send them in the other direction. I do think the market is in the stage where it will start separating the winners from the losers,” said Kohavi. “We do believe that only the strong leaders will be rewarded.”
Founded in 1996, Vyyo is headquartered in Cupertino, Calif., with research and development facilities in Jerusalem.
