Cape Range Wireless lands Burma dealBy Chris Jenkins, MWN...

Cape Range Wireless lands Burma deal


By Chris Jenkins, MWN
Wednesday, 19 June 2002
WA-based wireless fixed access vendor Cape Range Wireless kick started sales of its new Arcadian product by signing a deal to supply local access gear in Burma, taking the first step into a market it believes will be worth at least US$100 million in the next five years.

Cape Range cites analyst figures that put worldwide demand for Wireless Local loop services at over 100 million lines by 2006, with potential revenue of around US$41 billion. Of that, it’s believed the Asia Pacific will account for approximately US$16.3 billion.

Chairman of Cape Range Wireless, Dr Ron Wise, said the business model for the Arcadian system is based around emerging markets that currently have little or no access to fixed wire telephony services.

Cape Range’s Arcadian system uses wireless to overcome the cost and logistical obstacles that wired systems can present in these markets. Wise said that in India, for example, the provision of a wireline service to a subscriber can cost as much as US$1400-1500, which is prohibitive in many market segments.

Cape Range Wireless believes it can deliver services to users throughout the region for around US$500.

Wise said to succeed in these markets, a system must be affordable “and not just a catch up to the rest of the world,” adding that Arcadian also provides a 3G upgrade path.

Using it’s own proprietary IP protocol, Cape Range claims the product provides low power, long distance services and can act as a local exchange carrying voice data and fax services.

Although based in Western Australia, Cape Range does most of its development work in Malaysia, where it has 80 engineers, along with 20 based in India.

Myint Win, who signed the deal on behalf of Burmese system integrators Galaxy, said that although Burma is a sizable country with around 49 million inhabitants, only about 400,000 people in the country have a phone, “which is the lowest density in the world,” he added.

Win said the Cape Range Wireless System would be most suitable for use in rural areas in the country, which still make up a sizable portion of Burma’s population. Galaxy will roll out the system on behalf of Burmese carrier Bagan Cybertech, a relatively new, privately owned operator.

Closer to home, Wise said that Cape Range Wireless has been in discussions with Telstra. He said unlike Asian markets, where Cape Range will use channel partners, Australian customers will be serviced directly.

He said Arcadian has also attracted interest from property developers, who see the system as a cost effective alternative to wiring up new developments