Paradise Datacom CEO Hails Key Contract Win over Comtech

By | October 21, 2008 | Feature, Telecom

[Satellite News 10-21-08] Paradise Datacom won a significant satellite modem contract in Asia, which the company believes shows it can compete better with archrival Comtech EF Data.
    Paradise Datacom announced a contract Oct. 17 to supply satellite modems for the first phase of a large mobile telephone network expansion project in Asia. The project calls for modems to support satellite backhaul links in three phases before the end of March.
    While the project has a value of just $1.3 million, Paradise Datacom CEO John Restivo said the significance of the contract win is not about the money but about the company’s ability to go toe-to-toe with Comtech. “The main significance of this award was the fact that a major GSM operator was drawn to a host of unique features of our Evolution modem and ultimately chose our product over that of their incumbent supplier, Comtech EF Data,” Restivo told Satellite News. “In addition, we were forced to identify an ABIS optimizer manufacturer we could team with due to bankruptcies and acquisitions of mainstream manufacturers within that small industry. Again, as a result of our teaming, we were able to demonstrate to the customer a solution that has sufficient benefits to move them from their incumbent supplier Comtech/Memotec.”
    Restivo also hailed the technology behind the deal. “One of the key elements of our solution was our proprietary MultiMux feature of our modem,” he said. “MultiMux allows the GSM operator to combine an IP stream with multiple G.703 sources in a single modem, which can represent major capital expenditure savings. This was a significant award for us. Not only because of its size, which could exceed $1 million, but the fact that it represents a technology win over one of our key competitors.”
    Restivo believes Paradise Datacom’s satellite modem business is performing strongly and does not think the credit crunch is having an impact. “We have seen the opposite effect. While there has been some swelling in certain segments of the economy, this particular segment for us has not slowed,” he said. “We have some of the best backlog in our history. There are various reasons for that. One of our main competitors, Radyne was acquired by Comtech which eliminated a very significant competitor from the field and it provides us with some opportunities to work with companies who would traditionally not want to work with Comtech, so we get some benefits of that.”
    Restivo see more opportunities in the Asia-Pacific region, with countries such as India and China also looking to build telecoms infrastructure, with a lot of satellite communications equipment required for their efforts. “If you look at industries like the oil and gas industry, they are very strong for us. Commodities like oil or gold in places in Africa is a good opportunity for us,” he said. “In the United States, it is the military and broadcasters. For other countries, it is more where there are opportunities to develop natural resources and infrastructure. We are targeting more satellite communications networks, which are more IP-centric. We have products slated for launch in the next 18 months to two years.”

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