Moto turns to Amedia for IP home gateway
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Amedia Networks and Motorola Wireline Networks (a subsidiary of Motorola) have agreed to jointly develop three IP home gateways for use with Motorola’s existing multiservice access platform.
The new products will be branded and distributed exclusively by Motorola, which will pay Amedia $1.9 million for their development.
As part of the three-year deal, Amedia will also grant Motorola the exclusive right to resell Amedia’s PG1000 and HG-V100 gateways to certain big telecom carriers for two years. Amedia also agrees not to sell any products to customers that have purchased its gear through Motorola until two years after the partnership has expired. But that provision will be nullified if Motorola makes, sources or resells any gear that competes with the PG1000 or the HG-V100.
The deal represents some sorely needed good news for the 12-year-old equipment company, which changed its name to Amedia in 2004 amid a new focus on broadband gear co-developed with Lucent Technologies. Late last year the company reported it was searching for more funding to support its business plan and liquidity. In recent regulatory filings, the 12-year-old equipment vendor estimated it had earned about $5,548 in revenue for 2005 and a net loss of nearly $13 million.
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