MONTREAL, June 15 /CNW Telbec/ - Mitec Telecom Inc. ("Mitec") (TSX: MTM), a leading designer and manufacturer of mobile wireless, fixed wireless, broadcast and satellite components announced today it has begun initial shipments for Long Term Evolution (LTE) 4G wireless networks which are expected to generate approximately $1.75 million in revenue over the next several months. It is anticipated that this product line will represent a significant source of revenue for Mitec over the next several years. The components are being produced in the Corporation's China facility and the customer involved is one of the world's largest and fastest growing telecom suppliers.
LTE technology, which is the fastest growing 4G standard of next generation networks, has the capability to deploy data rates comparable in performance to cable modems. However, rather than depending on a wired connection to achieve this performance, LTE is used for wireless mobile, fixed and portable broadband access. Since smartphones are expected to outpace PC sales based on their current sales momentum, the introduction of LTE is a milestone event. It offers a number of benefits to operators aimed at increasing capacity, reducing network complexity and thus lowering deployment and operational costs. LTE technology also enables operators to meet the growing demand for mobile data solutions, making it possible for richer services to be delivered to consumers more cost effectively.
"After a lengthy qualifying process, Mitec is very well positioned to participate in the implementation of LTE with one of the world's fastest growing telecom companies", commented Daniel Piergentili, Mitec's President and CEO. "Operators have been increasingly looking to LTE for continued momentum to position themselves for future growth across the entire telecom sector. Currently 80 operators in over 30 countries have established LTE commercialization schedules. Based on what we are seeing in our pipeline, it appears that LTE is now well positioned for fast track growth and all indications are that this will continue for several years", said Piergentili.
About Mitec Telecom Inc.
Mitec is a leading designer and provider of radio frequency (RF) products for the telecommunications and satellite communications industries, as well as a variety of other sectors. Mitec sells its products worldwide to network providers for incorporation into high-performing wireless networks used in voice and data/internet communications. Headquartered in Montreal, Canada, Mitec also operates facilities in California and China. Mitec is listed on the Toronto Stock Exchange under the symbol MTM. On-line information about Mitec is available at www.mitectelecom.com.
Due to confidentiality provisions, Mitec is generally not able to disclose the names of its major customers or the financial data related to sales transactions. Certain statements in this release, including statements regarding future results and performance, are forward-looking statements based on current expectations. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions, decreases in demand for Mitec's products, fluctuations in selling prices and adverse changes in general market and industry conditions and other factors listed in Mitec's public filings with the appropriate securities regulatory authorities.
SOURCE Mitec Telecom Inc.
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