Analyst: FiberTower backhaul deal helping DragonWave cut Clearwire strings

A deal to provide equipment for FiberTower's 24 GHz and 39 GHz packet backhaul networks is helping DragonWave move on as its Clearwire (Nasdaq: CLWR) business struggles, a Jefferies & Co. analyst said in a note to clients.

"We believe FiberTower (a new incarnation of former LMDS access companies First Avenue Networks and Teligent) will likely spend 75 percent of its future backhaul spending on microwave (rather than fiber) and think the benefit to DragonWave could be more than $1 million per quarter in the future, providing a 5 percent to 10 percent boost to its non-Clearwire revenues," said Jefferies analyst Peter Misek in the note.

DragonWave needed something to bolster its coffers as Clearwire pulled back on an aggressive rollout schedule. FiberTower, on the other hand, is seeing more business backhauling 3G and 4G traffic for major mobile carriers.

In a related comment, Misek also said that he expects AT&T's (NYSE: T) acquisition of T-Mobile USA could be the final straw that forces a Sprint (NYSE: S)-Clearwire deal, which, in turn could be a benefit to DragonWave.

For more:
- International Business Times has this story

Related articles:
Investors jittery over DragonWave's customer prospects
Clearwire-dependent DragonWave watches business erode

Suggested Articles

Check out our updates on third-quarter results for streaming media companies, programmers, pay TV operators and broadcasters.

Charter has found another media ally in its fight against online video piracy, enlisting Fox to fight online video piracy and password sharing.

Comscore also today announced that it will be the measurement provider for Tegna’s Premion local OTT ad service.