Sequans Lands Huawei’s Latest WiMAX Endorsement

Event Summary

May 26, 2010 -- Sequans Communications, a WiMAX chipmaker, announced that Huawei has selected Sequans’ new generation chips for the development of several mobile WiMAX devices, including USB dongles, modems, and CPE in multiple frequency bands. According to Infonetics, Huawei is the current market share leader in WiMAX equipment, with more than 60 deployments worldwide.

Quick Take

Analytical Summary

• Current Perspective: Positive on Sequans securing Huawei’s selection of its SQN1200 series chip for Huawei’s ongoing mobile WiWAX development efforts, because the win sustains Sequans’ momentum within the WiMAX silicon segment, given Huawei’s ability to assert market share leadership within the mobile WiMAX market segment.

• Vendor Importance: High to Sequans, since it needed to land a high-profile win for its SQN1200 series chip to capitalize further on the revitalized prospects for mobile WiMAX services/equipments and to boost its nascent development and marketing efforts for its LTE SQN3010 series, as well as overall promotional efforts for its fixed WiMAX SQN 1010/2010 series assets.

• Market Impact: Moderate on the overall 4G/WiMAX silicon market segment, since Sequans’ mobile WiMAX rivals continue to line up their various OEM wins, as evidenced by Beceem’s market leadership within the area and the increased sales and marketing emphasis on overall 4G/LTE development efforts.

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Competitive Positives and Concerns

Response & Recommendations

Buyer Actions

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