RE: RE: want more plse! dragonwave sandvne compari
Longhaul, to the best of my knowledge, DWI and SVC are not truly comparable. This is taken from DWI's M&D discussion: "Dragonwave is a leading provider of high capacity ethernet microwave...the principal application of our products is wireless network backhaul".
DWI, to the best of my knowledge, isn't and probably doesn't intend to get into or onto SVC's turf. But I would agree with you when you state that DWI compete's solely in the mobile space. I just think DWI and SVC are in different sub-spaces within the overall mobile space.
In short, ISP's looking to immediately reduce congestion, increase bandwidth, capacity, etc. and all the while spending reasonable amounts on capex would and have been wise to overhaul and enhance and upgrade their backhaul. To the best of my knowledge, backhaul affects the data transmission rates. That's why, imo, it has made sense for ISP's to focus in on this aspect of their network at this time - presuming they upgraded other parts of their network, data transmission rates would still be alarmingly low. There have been a # of rumours about AT&T and the causes of the congestion on their network - some have argued it's b/c they failed to overhaul their backhaul and it is this oversight that has caused the congestion issues with the iPhone.
DWI's share price has moved as a result of the major customer win (clearwire). They also have won Globalive and Videotron here in Canada. Once DWI won clearwire and details came out, DWI's stock moved significantly.
In addition, SVC's gear, to the best of my knowledge, isn't 'introduced' to the mobile network infrastructure until after prior upgrades in an ISP's network, including overhauling the backhaul. I think this is what Caputo meant when discussing AT&T's network at the investor briefing - other upgrades would be completed prior to adding the SVC like intelligence layer.
So it'll be interesting to see when Clearwire adds SVC like intelligence gear into their network. Of course, I'm presuming Clearwire will but there is a very strong likelihood all ISP's across the world will have and/or add an intelligence layer in their networks, whether on the wireless or the wireline side. Of course, the focus moving forward is on the wireless side. When one considers how many ISP's are out there that are or will be upgrading their network, all across the world, the market for SVC and its competitors is quite huge.
Whether or not SVC wins major contracts - time will tell. Caputo has said during conference calls and at the investor briefing that RFP's keep coming in, and in particular on the wireless side. However, it's still a jump to conclude they'll win any major contracts. It's like sub-contractors bidding on an aspect of a construction project - all the sub-contractors will put in their bid and find out later if they've won. Many subs who bid on a # of projects don't end up winning any. Similarly, SVC could be getting a # of requests and submitting a # of bids across the board only to find out they haven't been selected. Only time will tell.
The other thing of note is sometimes SVC puts in a bid directly or through a sales partner such as NSN, Huawei, etc. Caputo has already mentioned that some wins have come through their sales partner. It'll be interesting to see if any major wins come through SVC's sales partners moving forward.