TORONTO—Sierra Wireless has begun shipments of its high-speed communications card to Verizon Wireless. The new AirCard 555 modem will provide higher connectivity speeds for mobile workers who want to send e-mail, connect to corporate networks or browse the Internet.
The launch of the new product may help offset concerns about delayed shipments and the company’s prospects. In January, the Vancouver-based manufacturer’s stock fell sharply on the Toronto Stock Exchange after Sierra Wireless warned that its fourth-quarter revenue would be much lower than previously expected and that it is holding back some new products for further testing.
The AirCard 555 is a dual-band modem that will work in areas not yet covered by the 1xRTT Verizon Wireless network, which is currently available in parts of the northeastern United States, parts of California and in Salt Lake City. Verizon plans to launch the 1xRTT network in other major U.S. cities by the middle of this year.
Sierra Wireless announced a US$30 million sales agreement with Verizon Wireless in late 2000 and had originally planned to begin shipping the next-generation communication card late last year. The manufacturer has contracts with three major carriers—Verizon, Sprint PCS and AT&T—to supply wireless data modems.
