DragonWave renews microwave products framework deal with Nokia Siemens Networks

Canadian backhaul specialist will get a cash injection from NSN and will continue to supply it with microwave products under the new brand name of ‘Harmony’

DragonWave renews microwave products framework deal with Nokia Siemens Networks

DragonWave today (10 April 2013) announced changes to its existing operational framework with Nokia Siemens Networks. In line with the renewed framework, DragonWave will continue to be the preferred, strategic supplier to Nokia Siemens Networks of packet microwave and related products, and the companies will jointly coordinate technology development activities.

The renewed framework will strengthen the alliance between both companies. This reinforces Nokia Siemens Networks’ strong commitment to its mobile broadband customers, who will continue to enjoy a complete mobile broadband solution including FlexiPacket Microwave Radios supplied by DragonWave. With this, mobile operators will be able to further drive innovation in the high capacity E-Band and small cell domains.

Under the terms of the renewed framework Nokia Siemens Networks will provide DragonWave with an immediate cash payment of €10.6m (£9m). This will clear the contingent receivable on DragonWave’s balance sheet.

Nokia Siemens Networks will take on additional commitments and costs so that DragonWave can continue to develop world class microwave products at competitive prices and focus on excellence in quality and supply. The Italian services agreement, pursuant to which Nokia Siemens Networks has provided R&D and certain other services to DragonWave since 1 June 1 2012, is terminated.

As a result of this action DragonWave expects that operating costs will be reduced by approximately €3m (£2.5m) per quarter. DragonWave expects to pay a termination fee totalling approximately €7m (£5.9m) over the balance of fiscal year 2014.

DragonWave has rebranded the products acquired from Nokia Siemens Networks as “Harmony” products and will continue the support and development of these products, which will also be sold via Nokia Siemens Networks. The strategic agreement envisions Nokia Siemens Networks continuing to maintain the commercial interface to mobile customers and “Harmony” remains a fundamental part of its mobile broadband proposition.

‘The new arrangements being announced today are intended to streamline our operations and customer outreach strategy to better serve Nokia Siemens Networks and its customers. We look forward to continuing to pursue market opportunities together with Nokia Siemens Networks,’ said DragonWave president and CEO Peter Allen.

‘We believe that, by 2020, mobile networks will need to be ready to deliver one gigabyte of personalised data per user per day profitably and we are committed to offering our customers the best mobile broadband solution possible including the microwave that DragonWave brings to the table,’ added Marc Rouanne, executive vice president, mobile broadband at Nokia Siemens Networks. 

Written by Wireless magazine
Wireless magazine

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