This standard, which will probably be called 802.16-2005, is a continuation of the WiMAX standard for fixed devices, such as for community switches. The standard for fixed devices, approved in 2004, is called 802.16-2004. Mobile WiMAX focuses on mobile broadband devices. Commercial launching of fixed WiMAX products is expected in the first half of 2006, while product availability of mobile WiMAX devices is not expected before the second half of 2006.

Meanwhile the www.unstrung.com website, one of the most widely respected futuristic websites, reports that Lucent Technologies (NYSE: LU) is joining forces with Alvarion (Nasdaq: ALVR; TASE: ALVR) in the mobile WiMAX field. In January, Lucent announced that it planned to resell Alvarion fixed wireless kit based the 802.16-2004 standard.

Senior Unstrung Europe editor Justin Springham believes that joint Lucent-Alvarion tests of the 802.16-2004 kit will begin next month. Alvarion North American VP marketing Carlton O'Neal said, “The deal includes mobile.” Alvarion VP marketing Rudy Leser added, “The agreement is an OEM agreement, where Lucent is selling Alvarion’s WiMAX product line.” Alvarion has not yet published anything about this important matter, while a Lucent spokesperson sent an e-mail to Unstrung, which said, “Our work with Alvarion remains focused on 802.16-2004. We have nothing further to announce or share at this time.” What is involved is the sale by Lucent of Alvarion’s end-user equipment.

”What is certain is that the vendor is bullish on its plans for wireless broadband technology,” Springham writes. If the Lucent-Alvarion agreement is extended to the 802.16-2005 mobile WiMAX standard, then Alvarion will have passed its most important test attaining an OEM agreement with a leading infrastructure company. Keep in mind that a previously mentioned agreement with Siemens (NYSE: SI; XETRA: SIE) was called off because Siemens decided to go it alone, while Alvarion’s agreement with Alcatel (NYSE: ALA; Paris: CGEN) was confined to the 802.16-2004 fixed WiMAX standard. Meanwhile, the Alvarion share is falling, and in my opinion, it’s just getting more interesting, but that’s only what I think.

The Vyyo (Nasdaq: VYYO) share has lost 60% of its value since February 2005. This loss of value is rather justified, if we look closely at what’s left of the company, on which so many hopes were formerly pinned. A large proportion of this decline took place this month, when the Needham & Co. investment house downgraded its recommendation from the share from “Hold” to “Underperform”. Needham downgraded the share after finding out that Vyyo had a contractual obligation with its shareholders, which stipulated that if the company did not have $20 million at both the end of 2005 and the end of June 2006, it would have to pay them a $6.5 million penalty payment. Needham’s analyst believes that the company will not meet this target, which is why he lowered his recommendation.

Furthermore, Needham was angry that the company had not reported this agreement. Needham said that the company had $27 million in cash at the end of June 2005. At its current cash burn rate, $10 million of that sum will be gone after the current quarter and the following one. Vyyo also has about $2 million in one-time expenses, which means that the company will finish the year with $15 million in cash, and will have to pay $6.5 million. That will not leave it any breathing room.

What Vyyo has to show right now is negligible sales of $3.5 million a year, and a huge $30.5 million loss. Needham’s analyst predicts a $1.70 loss per share this year, which really is not a very good situation. I’d say that, from an economic standpoint, the fall in the share may not have ended. Next week, however, Vyyo senior VP Dr. Mike Ritter will present a new product at the Gartner Energy & Utilities IT Summit in California. It seems that Vyyo has tested its product (successfully, Ritter claims). The product, which performs wireless monitoring of the operating systems of service companies, was tested at Northern Electric Corporation.

Wireless monitoring of power plants and similar installations is a very important field. The question is whether Vyyo can persuade the market that it has a solution. The field is very competitive. If Ritter, who joined Vyyo only last year, manages through his demonstration and lectures to convince the people attending the conference, then the company will be able to sell a lot more that what is currently expected of it. The problem is that we investors find out what’s happening only afterwards. In the current situation, therefore, I’m sitting on the sidelines.

Incidentally, Comverge Inc., a subsidiary of DSSI - Data Systems & Software (OTCBB: DSSI), also develops wireless monitoring of power plants and service. Yesterday, the company announced that, together with Emerson Electric Company (NYSE: EMR), it had developed a special thermostat for measurements in power stations. DSSI is another one of those companies that never fulfilled their promises to their investors. For reasons that are unclear to me, the company’s shareholders still have confidence in its management.