sees in excess of $2mln additional revenue...

NetComm sees in excess of $2 million in additional revenue from
local hotspot market
SYDNEY, May 27, 2004 – Broadband specialists NetComm today announced that it has grown
the number of wireless Internet hotspots in Australia by almost 40 percent since entering the
market in February this year.
NetComm’s HS800 ‘Hotspot-In-A-Box-Solution’ enables any organisation to provide and charge
for wireless Internet while, for users, it provides a welcome alternative to the complex credit card
registrations used by most wireless carriers.
According to analyst group IDC, Australian wireless carriers had established a total of 380
primary commercial wireless locations as of the end of Q1 2004. Since then, more than 150
NetComm hotspot solutions have been sold in Australia, raising the potential number of hotspot
cells to around 530.
“We expect that our hotspot solutions will generate in excess of $2 million in additional revenue
over the next 12 months, while we believe that sales of ancillary products such as modems and
devices for wireless connectivity will also increase markedly,” said NetComm managing director
David Stewart.
In contrast, wireless operators have reportedly struggled to generate returns with cumbersome
billing and authentication systems among the key inhibitors.
Sensing the market opportunity, NetComm launched in February this year a solution enabling any
business to provide and bill its customers for wireless Internet access via an existing, fixed, highspeed
connection, such as ADSL.
Unlike with carrier-provided services that require users to register details such as their credit card
with a service provider, the HS800 requires only that customers have a wireless enabled device
such as a Centrino laptop while all authentication and payment details are processed immediately
at the point of sale.
Via the HS800, users can browse the web, access corporate applications or send email at
speeds of up to 11Mbps from anywhere within range of the product’s access point. The HS800
also allows hotspot providers to fully customise their billing systems, for instance to pre-set
access charges and keep track of network usage.
Further, wireless users connected via the NetComm solution are typically charged less than
customers of actual wireless service providers who can pay anything up to $15 per hour in
Sydney and Melbourne.
“We expect to see strong demand for our hotspot solution over the coming months, largely
because of its simplicity both for providers of the service and their customers,” Mr Stewart said,
adding: “The ability of companies to provide affordable wireless Internet is an important market
differentiator in any industry.”
The HS800 has enjoyed particular success throughout the hospitality, education and convention
centre sectors in Australia. NetComm will announce in the coming weeks a new solution, which
allows organisations such as large hotels, banks and other institutions to provide, manage and
bill for wireless Internet access to several hundred users at a time.
For further information, contact:
Mr Michael Boorne
Executive Director
Tel: 02 9424 2000