SR Telecom Inc. (SR Telecom), incorporated in 1981, is primarily engaged in the design, production and sales of fixed wireless access (FWA) products and the services related to their installation and maintenance. The Company's customers are located in over 110 countries worldwide, where they use its technologies to deliver voice, data, and Internet services to their subscribers. SR Telecom also provides local telephone service, payphone service, and Internet access to subscribers in rural and urban areas of Chile through its majority-owned subsidiary, Comunicacion y Telefonia Rural S.A. (CTR). In June 2004, the Company finalized the restructuring of its French operations, which included closing the research and development facilities, but maintaining sales, project management and after-sales support facility in France for its European, Middle Eastern and African (EMEA) clients. Effective December 1, 2005, the Company sold substantially all of the assets and the operations of its subsidiary in France, as well as its Australian subsidiary to a subsidiary of Duons Systemes of Paris, France. With this transaction, the Company effectively disposed of its swing product line and related operations. Fixed Wireless Access Business The Company designs and manufactures point-to-multipoint, fixed-wireless-access systems that its customers use to connect telephone, Internet and data users to a telephone exchange or data access point. It also provides its customers with complete turnkey services, including project management; network planning, design and installation; technical support and training, and system maintenance and upgrades. The Company's products support the frequencies commonly allocated for broadband access and rural access networks, which helps its customers gain government approval for their use. Most of SR Telecom's sales are international, with an installed base of almost two million lines in over 110 countries worldwide. Its customers include incumbent local exchange carriers, local exchange carriers, private operators of telecommunications systems, operators of Supervisory Control And Data Acquisition (SCADA) systems, and wireless Internet service providers. SR Telecom's products and services provide a range of applications, such as telecommunications services for rural and isolated regions where traditional copper telephony wiring is not cost effective due to large distances, difficult terrain and other considerations; voice and high-speed data services to residential end users in suburban or urban areas; high-quality voice, high-speed data and Internet access to suburban and rural communities; connectivity for private voice and data networks owned by specific users, such as government agencies, industrial enterprises and specialized carriers; communications networks for SCADA systems that monitor large industrial installations (such as pipelines and electric power transmission lines) and provide internal voice and data communications, and connection of mobile phone base stations to the core telecommunications network (mobile backhaul). The SR500 system offers a single wireless platform for the distribution of voice and data services. SR500 system is used primarily by incumbent local operators to provide rural telephone networks. SR500ip is the evolution of the SR500 to an Internet protocol-based, wireless-access platform that is suitable for distributing service to large numbers of voice and broadband Internet subscribers. SR500ip was developed by SR Telecom and introduced to the market in 2004. The first systems became operational in 2004. Launched in 1998 by Netro, the airstar system can simultaneously transport video, voice and data at high rates, such that it is an alternative to optical fiber in many applications. airstar is used by incumbent local operators to provide metropolitan data networks, such as Internet protocol local area networks (IP LANs). Mobile operators and other carriers use airstar to connect second-generation (2G) and third-generation (3G) mobile base stations to the cor

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