ferret's stock to watch: unwired group ltd

Ferret's Stock to Watch: UNWIRED GROUP LIMITED
08:20, Tuesday, 21 September 2004


RADIO WAVE COMMUNICATION EMERGING AS THREAT TO TELSTRA


Sydney - Tuesday - September 21: (RWE)
**************************************

OVERVIEW
*********

Mobility of communication and a wireless broadband service could
eventually sound the death knell of the telephone as we know it today.

It could become a major threat to Telstra.

Unwired Group intends to establish a fixed wireless access
network in major cities and regional centers across Australia for the
delivery of broadband and voice services.

However, country areas are excluded from the roll-out at this
stage.

Unwired holds spectrum licences which covers about 95 per cent of
the Australian population.

The spectrum is in the 3.4 to 3.5 GHz frequency band designated
by the International Telecommunications Union for the provision of fixed
wireless access services.

The spectrum licences expire on December 13, 2015.

In June 2004 the company launched its wireless broadband service
in Sydney and took on its first customers.

The principal activity of the company during the year was the
construction and deployment of a wireless local loop network in the
3.4GHz to 3.6GHz spectrum band.

At the same time Unwired launched commercial services in Sydney,
providing wireless broadband services to the consumer, home business and
small business markets.

This was a significant change in activities from December 12,
2003.

Before this date the company was a non operating company.
Unwired Group Limited did not pay dividends to members during the
financial year ending 30 June 2004.

The ability of the company to pay dividends in the future is
dependent on many factors, including the company's ability to build
wireless networks in Sydney and elsewhere, and to attract customers to
those networks.

SHARE MARKET MOVEMENTS
**********************

Shares of Unwired slipped 2c to $1 yesterday. Rolling high for
the year has been $4.50 and low of 55 cents. Directors have not given any
indication of when the company will pay a dividend.

Meanwhile the company reported that operating revenue for the
year was $335,000, made up of spectrum leases in remote regions, sale of
wireless modems and one month's subscriptions from the first month of
commercial operations.

As the broadband wireless network was only partially completed by
the end of June, commercial operations had only started in a limited
coverage area from June 1, 2004, and for the same reason there was no
significant marketing or sales activity.

In addition the company earned $2 million of non-operating
revenue, which was primarily interest income.

Expenses from ordinary operating activities were $9.548 million
for the year, and capital expenditure was more than $20 million of the
forecast $33 million for the Sydney network build and back office.

During the period from December 2003 to June 2004 the personnel
numbers grew from eight to over 60 full time staff.

A complete management team was put in place and the initial
customer service team was hired.


BACKGROUND
**********

For the period to December 12, 2003, and during the preceding
financial year, the company did not conduct an operating business.

At the end of this financial period ( December 12, 20030 the
company held an extraordinary general meeting.

Shareholders adopted a number of resolutions, including:

* Agreeing to acquire all the issued capital of Unwired Australia
Pty Limited.

* As consideration, shareholders of Unwired Australia Pty Limited
received 128,821,823 shares in Breathe Group Limited.

* Agreeing to change the name of Breathe Group Limited to Unwired
Group Limited.

* Agreeing to raise new share capital of $105 million by issuing
116,666,667 shares at 90c each.

On December 23, 2003, the company was re-listed on the Australian
Stock Exchange as Unwired Group Limited (ASX: UNW).

In the period since December 13. 2003 Unwired has commenced
executing its business constructing and deploying a wireless local loop
network in the 3.4GHz to 3.6GHz spectrum band, and launching commercial
services in Sydney, providing wireless broadband services to the
consumer, home business and small business markets.

In June 2004 the company launched its wireless broadband service
in Sydney and took on its first customers.

On the Unwired website the company proclaims it offers the same
features of other broadband connections available today.

The incredibly fast speeds and 'always on' features are the same
as those offered by cable or ADSL broadband technologies.

However, the similarities stop there.

Customers connect to high speed internet wirelessly over the air,
rather than through a phone line or cable.

This means that you get all the benefits of traditional
broadband, plus the portability and freedom that only wireless broadband
can offer.

Unwired gives you aren't limited to using your broadband
connection within just your home or office.

Wherever you take your Unwired modem within our entire coverage
area you will have instant access to your broadband connection, at no
extra cost.

Unwired suggests you can move your modem between your home or
your office, take it with you when you move home, take it to university
or to the library, to your friends house, or to your local café with your
laptop, and you'll always have the convenience of high speed broadband.

Unwired is building Australia's largest public wireless network
so that you clients will have the freedom to enjoy your broadband
connection wherever you go.

Unwired is also ideal for people who haven't been able to get
broadband until now.

The Unwired network expects to cover 95 per cent of houses within
the Sydney coverage area.

The company believes its simplicity is unique.

The modem is plug and play and customers are allowed to activate
their account themselves, so there is no waiting at all.

ENDS

Copyright © 2004 RWE Australian Business News. All rights reserved.

>>>>>>>>>>>>>>>>

I don't hold UNW

Cheers,

Fig Jam