Unwired soars as Intel backs US networks
Michael Sainsbury, Telecoms
July 07, 2006
SHARES in wireless telco hopeful Unwired were boosted yesterday after a similar company in the US received an injection of $US900 million ($1.2 billion).
Clearwire, founded by American mobile network pioneer Craig McCaw, grabbed $US900 million in a funding round from computer chip maker Intel, which also invested in Unwired last year. In August last year, Intel paid $37 million for a convertible note in Unwired which, if converted, would give it the right to hold 88 million shares in the company.
Unwired was founded and is chaired by pay-TV and property tycon Steve Cosser.
"The size of this investment from Intel Capital underscores our commitment to supporting wireless broadband using WiMax networks in the United States," Intel Capital president Arvind Sodhani said.
"Our collaboration with Clearwire and Motorola builds on the foundation of previous WiMax network deployment investments made by Intel Capital throughout the world to bring the benefits of mobile high-speed and content-rich internet access to wireless broadband users."
Clearwire's business is the deployment of wireless networks for high-speed internet, or broadband, services.
Unwired chief executive David Spence described privately held Clearwire's business model as "very similar to ours, but they have a much higher valuation".
He said the US deal "had something to do" with the rise in Unwired's share price, which jumped 4.5c - or 15 per cent - to close at 33.5c yesterday.
Unwired now has a market value of $85 million. But Mr Spence said Unwired was not yet looking for the finance it would need to expand its networks beyond Sydney and Melbourne.
UNW
unwired group limited
