Alvarion stock is trading higher today since it was upgraded by RBC Capital Markets analyst Daniel Meron. Meron raised the stock from Sector Perform to Outperform because of "improved business tone and contract activity with new and prospective clients."

Alvarion is a key player in the planned rollout or WiMax in India, along with Gemini Communications, Harris-Stratex and ZTE. In addition, they are in talks with other Indian carriers resulting in a significant increased presence in that country. A local office is expected to open soon. Furthermore, there are encouraging prospects with the US carrier Open Range.

"While deployments so far were limited in scope, we believe the company is in advanced planning phases and the project is picking up steam, oiled with pending US Rural Utilities (RUS) funding. We believe we're set to see more substantial order intake during the first half of 2010 with revenues to follow in the second half," says Meron.

He adds that RBC expects to see the WiMax market grow to $3-4 billion over the next few years due to this demand in developing countries and rural areas of developed countries.

source:wimax