SR Telecom adds former COM DEV wireless product line to extensive portfolio

SR Telecom Inc. believes it has a better chance of successfully selling and marketing the former M/ERGY product line, originally developed by COM DEV International Ltd., than its previous owner due to the expansive geographic presence of the company. Last month, the Montreal-based wireless equipment manufacturer rounded out its portfolio of fixed wireless gear with the acquisition of certain assets of Mergy Inc. from Axio Wireless Inc. (RoW, Jan. 20/03). "We’re present in 110 countries, so we have a large installed base with very strong customer relationships," Paul Goyette, SR Telecom’s director of communications, tells Report on Wireless. "We’re going to mine our existing customer base and introduce the technology, the application of the technology, to our customers. Based on discussions we’ve had to date, there’s a tremendous amount of interest in our approach." SR Telecom, which recently announced details of a restructuring (RoW Update, Jan. 13/03), purchased the system for US$635,000 including intellectual property associated with the product line. The two companies also entered into a memorandum of understanding covering software licensing and support services. Axio, which is headed up by John O’Connell, the former chief at COM DEV’s broadband unit, purchased the M/ERGY product line from COM DEV last summer (RoW, Aug. 19/02). COM DEV unveiled the 1x EVDO-enabled product nearly two years ago to much fanfare at the Cellular Telecommunications and Internet Association’s 2001 conference (RoW, March 19/01). The product was hailed as a major leap forward in third-generation mobile wireless technology that could provide data throughput rates of 2.4 Mbps at vehicular speeds of 120 km/h. During 2001, the company publicized successful trials in Korea and other parts of Asia, where wireless service providers boasted of the product’s performance. Despite the level of satisfaction expressed by the operators, COM DEV was never able to attract enough attention to be able to sell the product in volumes needed to sustain its operations. Even paring down its RF systems business in an asset sale to Mitec Telecom Inc. late in 2001 couldn’t keep the M/ERGY business operational (RoW Update, Jan. 14/02). However, COM DEV’s inability to convince operators to buy the product may have had more to do with the downturn in the telecom industry and significantly depressed carrier spending than on the product’s performance. Over the last two years, capital infrastructure spending by wireless and wireline carriers alike has been down significantly. Despite the high praise heaped upon the product by mobile operators, Goyette explains that the company will be deploying the product exclusively in fixed wireless environments for data applications. "We’re going to stick to our knitting, look at the niche we’re in and apply the technology to our niche, which is fixed wireless access," he says. SR Telecom breaking into new geographic markets Last month, SR Telecom signed another contract with Bell Canada to provide the telco with fixed wireless equipment for unserved and under-served regions, bolstering its presence in the Canadian marketplace (RoW Update, Jan. 13/03). SR Telecom has been a longtime supplier to both Bell and Telus Corp. Not only is greater exposure to the Canadian market in the company’s sights, it hopes to garner more interest from the North American market in general. Goyette says gaining a larger presence in North America is top of mind for the company and the M/ERGY product line will surely be a boost on that front. "This product certainly gives an opportunity to break into the U.S. market in a big way," Goyette says.

SR Telecom adds former COM DEV wireless product line to extensive portfolio

News | 02/04/2003 5:00 am EST

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