A consortium of leading Israeli hi-tech companies is teaming up with academia to create a combined technological solution for large scale rural telephony, or LSRT.

Alvarion (Nasdaq:ALVR), Gilat Satellite Networks (NASDAQ:GILTF), TTI Team Telecom (Nasdaq:TTIL) and Telrad Networks are joining hands with researchers hailing from the Technion University of Haifa, the Ben Gurion University of the Negev and the Industrial Mathematics Institute, to create low-cost communications systems for remote areas with no infrastructure whatsoever.

The consortium has been operating under the auspices of the Ministry of Industry and Trade's Magnet Program.

The companies commented that the consortium's vision is for millions of villages worldwide to obtain telephony networks based on Israeli technology, based on satellite communications.

The companies commented that the consolidation of their complementary capabilities should create an integrative solution that none could have achieved on their own.

Alvarion operates in broadband access for phone companies. Gilat sells satellite-based telecommunications systems and is considered to supply 80% of the world market for telephony by satellite. TTI provides systems to manage and control communications networks and services. Telrad specializes in Internet communications and switching technology.

According to a report from the International Telecommunication Union, about 50% of the world's population has never made a phone call. About 40% of the world's population is at least two hours away from the closest phone.