A: You are quite right, the market has grown, and a lot of it is still in process. I could not quote any particular development supported by RUS as this is still in process. But we estimate our market share at 35 to 40%. We are present in a wide variety of applications, from municipal services to security, public safety, video surveillance, energy. We have customized solutions for many application segments.
Q: How does the RUS driven market compares with others in terms of opportunities for you?
A: We see it as a great opportunity to enable broadband wireless for lots of people and businesses. If you look at the broadband penetration in the US on average, it is not that great. Particularly looking at a speed of 700kbits/second minimum, it is less than 50%. RUS and the stimulus plan present great opportunities for companies like ours, as they embrace a whole range of applications. Wireless Internet becomes an enabler for applications to improve life, infrastructures, security, and efficiency.
Q: What resources are you putting forth to increase Alvarion’s presence in the face of this opportunity? So far, Alvarion’s presence in the US has been rather discreet and sub-optimal as the US represents only 14% of its revenues instead of a more customary 25-30% for most other network infrastructure providers.
A: We are definitely investing. Maybe we have not been very vocal in terms of marketing in this market, but we have in fact many customers and a strong presence here in the US. Many of our customers are operators focused on RUS programs, with business models for rural and small town America. One of our customers, DigitalBridge Communications, has already deployed WiMAX service in 15 such markets in the US. We have a great name, and the best technology. One of the bottlenecks over the past few years has been the unavailability of the spectrum. That’s starting to change, and with the stimulus plan, things should be moving forward quicker, with new players and new opportunities.
Q: What is Alvarion's compelling value proposition in response to its competition?
A: Our success is our customers’ success. We have solutions and a strong company totally committed to our customers. We are more nimble and agile, due to our size, and better equipped to adjust our solutions to the needs of the client, and customize the offer.
Q: What is the role of local government leadership and local government applications in this process and how can Alvarion best service them, through VAR/SI distribution channels or local service providers?
A: Local governments play a major role: many of those applications that we mentioned earlier are turnkey, and the local officials are very often the ones that get the spectrum, find the funding, and build their own network for specific local government purposes, not just commercial. Local government is sometimes our direct customer. Most of the time we work with operators, but intervene with local officials as necessary. We have developed a whole training system for our VARs and distributors, our partners in those deployments, so we can really keep up with the market. We get feedback on adjusting our offers to needs, and they get training to implement solutions faster and more efficiently.
Q: Given the Obama administration's emphasis on assessing the impact of the various stimulus initiatives, what can Alvarion do to help with that assessment?
A: That is when our engagement actually begins! Beyond providing the solutions, it is most important to follow up with the user, and develop metrics to assess the gains made with the deployment. We continue to be an integral part of the program from the very beginning by helping our customers through the identification of opportunity and the process of getting access to these funds and continue to work with them long after our solutions are put in place. It also benefits us in better understanding and identifying the issues, notably with applying for the various funding sources available. We can bring help in the process through our experience in getting together supporting documentation for those funding requests, all the more complex given that the criteria are still evolving.
Q: You are also addressing vertical markets, and your website provides interesting case studies. I was amazed at your deployment for Operation Green Light in Lenexa, Kansas where traffic light synchronization generates savings in people’s time, gas consumption, and carbon emissions that are impressive.
A: You are right; we have that type of deployment in several places throughout the world, including a recent operation in South Africa. There are many such applications that can benefit from the technology solutions we are offering.
Q: Any particular message that you want to convey to our audience of local government policy makers and broadband project champions?
A: Our biggest challenge at this time to meet with the opportunities created by the stimulus programs is the availability of spectrum. The FCC must make more spectrum available, through auctions and other assignments mechanisms. The auction tends to favor deep pockets companies that are not necessarily the biggest actors in local markets. We have made progress with the 3.65 band allocation, but the 700 MHz bandwidth should be opened as quickly as possible.
