UPDATE 1-Alvarion wins $100 mln contract, shares surge

* Contract from U.S.-based Open Range Communications

* Deal for 4G network across 17 U.S. states

TEL AVIV, June 17 (Reuters) - Alvarion Ltd (ALVR.O), an Israeli maker of WiMAX and wireless broadband equipment, said on Wednesday it had won a 5-year, $100 million-plus contract from U.S. broadband wireless operator Open Range Communications Inc.

Alvarion (ALVR.TA) shares surged 11.8 percent to 15.48 shekels at the opening of the Tel Aviv market, compared with declines in the main indices.

The contract, to boost broadband access in rural areas, spans 17 states, 546 rural communities and would reach up to 6 million people, Alvarion said.

Through the network, Open Range plans to begin offering fourth generation (4G) services to un-served and underserved customers across rural America in the fourth quarter of this year.

As part of the contract, Alvarion will provide radio access equipment, customer devices and systems integration for Open Range's broadband wireless network.

Some of the attributes available through this "always on" wireless broadband network include: voice and data capabilities, WiFi for connectivity to existing PCs and secure network communication.

($1 = 3.93 shekels)

(Reporting by Tova Cohen; editing by Simon Jessop)