Credit Herald

MONTREAL – Software developer Bridgewater Systems (TSX: BWC) said Monday it has won a contract from U.S.-based wireless communications provider MetroPCS to help manage user traffic on its advanced mobile phone network in 2010.

It's Bridgewater's first contract to provide personalized software services for what's known as a Long-Term Evolution network, expected to provide speeds similar to a PC experience on a mobile phone.

Under the contract, Bridgewater will manage all of the information on subscribers and devices for the regional U.S. carrier, company spokeswoman Joanne Steinberg said Monday.

"We're providing key components for their LTE network," she said from Ottawa. "This is our first LTE win."

The services will include management of information such as what applications are being used by subscribers, their location, profile and preferences, she said.

Ottawa-based Bridgewater will also provide services to identify, authenticate and authorize users who get on MetroPCS's LTE network, expected to light up in the second half of 2010, Steinberg said.

MetroPCS has about six million customers in the United States and would be equivalent to the size of Canada's Telus, she said.

Bridgewater will provide software to allow MetroPCS to handle mobile data traffic. Steinberg said as a result, MetroPCS will be able to let its users personally manage what bandwidth they use.

"You can decide which applications you want your bandwidth priority given to at different times of the day, or days of the week Payday advance."

National Bank Financial analyst Kris Thompson said he would expect Bridgewater to win an LTE contract with major U.S. carrier Verizon next year.

"This type of win at Verizon Wireless could be a $20-million plus revenue opportunity for Bridgewater over the next several years," Thompson wrote in a note released Monday, noting that Verizon is rolling out its LTE network in 25 to 30 markets in 2010.

He estimated the MetroPCS contract will generate "low single-digit million dollar revenue over the near-term."

"Wireless data growth is exploding and the carriers need to better manage their subscribers and networks."

Consumers are streaming more video, surfing the Web and using richer applications that allow them to trade online or get airline boarding information as they move to buy more smartphones.

Thompson noted that Bridgewater remains as a takeover target.

Steinberg says Bridgewater is looking globally to win other contracts to provide services for these advanced wireless networks.

"We're engaged in multiple trials with services providers around the world right now in Asia-Pacific, North America and CALA (Caribbean and Latin America," she said. "So, we're expecting additional opportunities with LTE globally."

Shares in Bridgewater were up three cents to $8.42 on Monday afternoon on the Toronto Stock Exchange.

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