The latter are expected to operate 50 times faster than today’s WiFi networks, allowing people to download movies in a matter of seconds.

“5G will create demands on networks,” said Allen. “That’s good news for us,” he added.

The real promise of 5G lies in its ability to allow smartphone subscribers to access their cars, appliances and other personal electronics. Major wireless carriers such as Verizon and Bell plan to begin testing 5G services sometime in 2017.


Mitel recently established a new division, led by former Mavenir CEO Pardeep Kohli, to invest in 5G technology. DragonWave is to provide its expertise in microwave technology, a low-cost substitute for fibre-optic cable.

For the moment, the Mitel-DragonWave collaboration is all about technology. As the market for 5G gear actually develops, the firms will discuss how to split revenues generated by the sale of products.

In the meantime, DragonWave will rely in part on secondary streams of revenue to avoid a further deterioration in its thin cash balance. The company reported less than $8 million (all figures U.S.) at the end of November, considered low for a high-tech firm. The loss for DragonWave’s fourth quarter ended Feb. 29 – to be reported sometime in May – is expected to be around 75 cents per share, or slightly more than $2 million.

To help buttress revenues – forecast to be about $25 million in the fourth quarter – DragonWave announced Tuesday it will compete for the right to service some 400,000 microwave units already installed in networks around the world, including the product line it acquired in 2012 from Nokia.