Motorola Inc.-expected next week to introduce its ReFLEX 25 two-way pager at CES in Las Vegas-has entered into a series of agreements with Glenayre Technologies Inc. to expand ReFLEX 25-based devices.
The agreements call for joint market development activities, collaborating on a common over-the-air programming protocol and extending Glenayre’s ReFLEX licensing agreement to encompass wireless modules and chipsets for such applications and devices as personal digital assistants and telemetry.
Last April, the two companies signed a memorandum of understanding for Glenayre to license and manufacture Motorola’s paging infrastructure product line. According to a Glenayre spokesman, that MoU is now dead, replaced by these agreements.
As first stipulated in last spring’s MoU, one agreement calls for both Glenayre and Motorola to contribute to a $5 million joint development fund to promote the global market for two-way messaging, develop joint applications and broaden the range of solutions and markets to be addressed. Exactly how much each company will contribute was not revealed.
Another agreement licenses Motorola’s Generic Over The Air Programming interface to Glenayre. GOTAP provides a common interface for OTA programming between both companies’ devices. The companies said they will work further to develop other common interfaces for ReFLEX modules as well, including telemetry applications.
While Glenayre’s Wireless Access Group has licensed ReFLEX technology for traditional paging devices, the latest agreement allows Glenayre to use the technology for modules and chipsets of other devices, like PDAs and telemetry products. This will allow Glenayre to work with other manufacturers to create new business opportunities, the company said.
Finally, the agreement establishes a market development advisory board that will direct market development initiatives, directed by a board of six. Each company will appoint three members to the board. Dale Mortimer, Glenayre’s director of business development, will serve as the board’s chairman.
Many see the agreements as the path for Glenayre to take over the bulk of paging vendor activities in the United States, as Motorola backs away from the sector to concentrate on other areas of the wireless business. The news caused Glenayre stock to jump more than $5 at the height of trading Wednesday to $13, on volumes of more than 10 million shares. It closed at $10.56.
