Motorola Could Drive Growth With WiMax

The WiMax deal with Sprint Nextel could bring $210 million for Motorola in 2007 and $307 million the following year, according to Bear Stearns analyst Philip Cusick. Sprint recently announced the selection of of Motorola, along with Samsung, as the principal vendors for the new high-speed network that it plans to build. Cusick said: “While fairly small compared to Motorola’s Networks and Enterprise category, this and other WiMax revenue could be important in driving growth in the category for the next two years.” Cusick expects further revenues for Motorola from other companies because of this development. “Given the importance of the Sprint contract to the WiMax ecosystem, Motorola, Intel and Samsung may be looking at very tight margins on this contract. We believe that ClearWire, the Canadian joint venture and Sprint together could generate over $500 million in annual revenue for Motorola,” Cusick continued.
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