Intel funds spectrum swap Andrew Colley (The Australian IT) SEPTEMBER 02, 2005
INTEL has agreed to finance wireless ISP Unwired's $15.7 million spectrum swap deal with regional cable TV provider Austar under a temporary credit arrangement.
Intel has agreed to finance the deal until Unwired's shareholders approve the chipmaker's $37 million equity investment in the company which was announced last week.
Unwired had planned to fund the spectrum swap deal through a loan facility provided by Allco Finance Group.
Unwired chief executive David Spence today said that the company no longer required the $15 million loan agreement with Allco.
The arrangement with Allco fell into doubt after Intel announced that it would back Unwired's capital works program.
Unwired said that it would use the $37 million cash injection to launch its wireless network service, which is only available in Sydney, in Adelaide, Perth, Brisbane and Melbourne. It also said it may dip into the cash pool to bankroll its deal with Austar.
Mr Spence said the terms of the deal with Intel were "favourable" and that they would "significantly simplify the company's funding and security arrangements."
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