Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from the line of Matthew Hoffman with Cowen and Company. Please go ahead.
Matthew Hoffman - Cowen and Company
Hey, good afternoon and congratulations on the launch of the MiFi today. So, let's talk about the competitive environment for MiFi. You're getting a lot of good press, but the competitive environment, when do you see it heating up? I see that Sierra is talking about maybe the Helix line. Can you talk about the competitive advantages right now you have with MiFi beyond time to market over some of the products you see coming to compete in this niche maybe by the fourth quarter?
Peter Leparulo
Sure. That's a good question, Matt. There's not a science to this, but we think based on the hardware side of MiFi, just as a hardware connectivity device, that we have probably approximately a six-month lead. And there are barriers to entry on all sides of it. As you probably know, we've been working on the MiFi product line across all technologies and bandwidths that address all regions for many months, nine to 12 months. And it's not a hardware solution. It's an entire ecosystem that we're putting together. What we anticipate happening despite what the competitor environment might be on the hardware side is to get an install base of users and then deploy the applications in software to make it even more defensible and to advance our lead by the time anybody else catches up.
On the IP side, we shot quite a few IP problems simply in the development of the MiFi. We've also put patent applications on file, which we would look to use in a defensible way when we see any of them crossed. So, with all that put together, we think we've got a very good competitive position. We think that we'll deploy through many operators, which will create an install base, and we also believe as we develop this ecosystem above others that we will advance that position going forward.
Matthew Hoffman - Cowen and Company
Okay. You've talked about three operators, two in the US and Telefonica overseas. What are the barriers right now to ramping beyond that footprint? You've got two CDMA guys and one HSPA. What does it take for Novatel to ramp, say, in the third quarter substantially beyond those operators? Is there a volume? Is there a technical issue? What does it take to grow that beyond those three?
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