Importance of the partnership
On July 2, tech giant Microsoft (MSFT) announced it will join forces with RADWIN, a leading provider of broadband wireless solutions. The partnership is a part of Microsoft’s Airband Initiative, which focuses on the rural broadband market. The partnership could enable both companies to reach out to the underserved broadband market at affordable rates. Moreover, the inclusion of TV white space solutions may further help the partners to penetrate physical obstructions and connect remote users.
According to Paul Garnett, senior director of the Microsoft Airband Initiative, “Our partnership with RADWIN, a recognized global leader in fixed wireless broadband access, will help address the rural broadband gap for residents and businesses, enabling farmers, healthcare professionals, educators, business leaders and others to fully participate in the digital economy.”
Cloud business could get a boost
Microsoft is slowly closing the gap in the cloud space with Amazon (AMZN). Thus, higher adoption of broadband in rural areas may improve demand for Microsoft’s cloud products. In the last five quarters, the Intelligent Cloud revenue for Microsoft grew at a CAGR (compound annual growth rate) of 3.6%.
Both Microsoft and RADWIN plan to launch TV white space technology with Airband partners in the second half of 2019.