China Grants 3.5GHz Frequency

PALO ALTO, Calif. -- Vyyo Inc. (Nasdaq: VYYO), a global supplier of wireless broadband end-to-end solutions for telephony and high-speed data connections, commented on China's Ministry of Information Industry's (MII) completion of a tender to bid on 3.5 GHz spectrum license grants.

The MII has allocated frequency in the third and final phase to five operators -- China Telecom, China Netcom, China Mobile, China Unicom and China Railcom. To expedite the infrastructure build out, the Chinese government requires that the operators start new system deployments within six months.

This final phase of 3.5 GHz spectrum license grants pertains to 27 provinces and autonomous regions in China. It is anticipated that operators will use the frequency for cellular backhaul connectivity for mobile systems and for a variety of access applications such as corporate network access, voice cafe and Internet cafe access.

"We are very pleased that the bidding process has been completed," stated Michael Corwin, president and chief operating officer of Vyyo. "Our market share, based on licenses granted in China as of the end of 2003, was approximately 25 percent. We are working with all of the operators that are planning to deploy 3.5 GHz broadband solutions and believe the new frequency grants will significantly increase our opportunities in China."

Vyyo