DragonWave, Inc.(USA) (NASDAQ:DRWI) stock is skyrocketing today on news of a deal with Sprint Corp (NYSE:S).
DragonWave will be working with Sprint to use its microwave backhaul equipment for network deployment as the wireless carrier moves forward with its densification and optimization strategy, which should improve the performance of the wireless carrier’s mobile network.
The goal of Sprint’s densification and optimization strategy is to provide customers with faster speeds and more coverage. Specifically, it will allow the company to offer better service to customers that are in high-traffic areas.
DragonWave was chosen by Sprint to help with its densification and optimization strategy for several reasons. This includes the company’s dual channel capabilities, advanced network security capabilities and system gain. Small cells and other solutions will be used to increase the performance of Sprint’s network.
“We look forward to continuing our work with DragonWave as part of our densification and optimization strategy,” Gunther Ottendorfer, COO of Technology at Sprint, said in a statement. “Microwave backhaul is a cost-efficient, reliable alternative when used in the right ring structures, and it’s a key part of the extension of our overall toolkit as we work to provide customers with more consistent coverage, better reliability, and even faster data speeds.”
DragonWave did not announce the financial details of its new deal with Sprint to enhance is wireless network. Sprint did not say anything on the matter, either.
DRWI stock was up 101% and S stock was down 1% as of Thursday afternoon.
