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Megisto Defends Maxis Win

Ex-wireless router startup Megisto Systems Inc. has hit back at suggestions that its carrier win with Maxis Communications Bhd. is less than credible as a reflection of its market stature (see Megisto Maxes Up).

The revamped company last week announced its first commercial carrier deal since refocusing efforts away from the wireless router market (see Megisto Breaks Silence).

Despite the win, some observers have been keen to write off the company’s chances of success, and last month Megisto denied speculation it is struggling to keep up headcount (see Megisto Denies Brain Drain).

The latest scuttlebutt to hit the vendor emanates from a post on the Unstrung message board suggesting that Megisto had little involvement in actually winning the Maxis contract, with partner Interactive Technology Holdings Ltd. (ITHL) instead securing the deal.

Carol Politi, VP of marketing, argues that Megisto has nothing to hide and has actively promoted its reseller agreement with ITHL (see Megisto Gets Asian Reseller).

“We are very pleased with the ITHL partnership,” she tells Unstrung. “Our entire strategy is to work with partners to deliver joint solutions... As the press release indicates, we executed on the Maxis sale with ITHL. This proves the value of the partnership.”

Politi claims the ITHL venture in no way undermines the value of the win. “Megisto is not doing meaningless partnership announcements. All our partnerships are intended to extend our distribution channels and increase our reach... Any time we can sell through an existing supplier, or through a local partner, we will do so.”

“A small company in Maryland needs partners to work with,” adds president and CEO Gordon Saussy. “Our partners won’t necessarily be brand names but those that have real reach into real customers.”

A recent announcement that LM Ericsson (Nasdaq: ERICY) is to upgrade the entire Maxis network has also raised concern that the Swedish vendor will overhaul Megisto’s kit during the project (see Ericsson Networks Maxis).

“We don’t compete against Ericsson," counters Politi. “So while we will interface with mobile core equipment from any mobile infrastructure vendor used by Maxis, I don’t see how it will impact the Megisto service switching deployment.”

— Justin Springham, Senior Editor, Europe, Unstrung

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