SmartWorld's ahead with Avaya partnership

SmartWorld's ahead with Avaya partnership

ASX-listed home networking manufacturer SmartWorld has signed a worldwide joint marketing partnership with connectivity vendor Avaya.

The partnership will see SmartWorld subsidiary and marketing division, SmartAmerica, promote residential structured wiring systems with Avaya.

SmartWorld produces a range of products designed to consolidate high-speed Internet, phone, lights, home entertainment systems, irrigation systems and home alarms across a single platform. The platform, referred to as a home gateway, can be used to manage all connected electrical devices in the home.

As part of the agreement Avaya has the right to acquire a 10 per cent equity stake in SmartAmerica for $US10 million at any time within the next six months.

The two-year agreement (with automatic renewal) provides Avaya an entrance into the home networking market. Many industry pundits have tipped the home networking market as a major potential growth market. Cisco last year launched its iHome, a fully networked home, in conjunction with 17 other companies.

SmartAmerica will be responsible for sales, marketing and support of the new Avaya SC400 Residential Structured Wiring product line, while Avaya will have access to SmartWorld's home control and Intelligent Home Gateway products.

In addition, the companies plan to co-develop products in the future, a statement released by SmartWorld said.

"With this alliance in place, we have increased our product portfolio and company profile which we believe will attract a broader customer base," claimed Paul Benetti, SmartWorld's group managing director. "We anticipate a six-month ramp-up time before the full effect of this alliance will be seen."

SmartWorld expects to generate $AY125 million by June 30, 2002, largely as a result of the partnership.

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