Big noises on the Wireless

By CHRIS BARTON

Walker Wireless has lined up a who's who of New Zealand investors to provide "more than $20 million" to expand its high-speed wireless data network.

The deal will see Stephen Tindall, Craig Heatley and Todd Capital take a 40 per cent stake in the company, leaving chairman Rod Inglis, who owns parent company Walker Corporation, with a 45 per cent shareholding.

The balance is likely to be held by smaller shareholders and Canadian investor Boyd Craig, of Craig Wireless.

Wireless internet access appeals to firms because it can reduce their telecommunications costs by taking them off, for instance, the Telecom network.

In May, Walker Wireless bought nationwide New Zealand radio frequencies in the 2.3GHz band from Mr Craig in a cash and share deal worth $6.5 million. Mr Inglis said details were still being settled.

The private share placement puts on hold Walker Wireless' plans to list on the New Zealand exchange this month.

"We still intend to make a public offering, but felt it was better to have a few more building blocks in place. We're still in the start-up phase of rolling out a nationwide network. It's better to do that out of the public gaze."

Mr Inglis said the capital would also be used to trial new equipment to deliver high-speed wireless internet access to residential users that would compete with Telecom's Jetstream service.

It would also develop services using the MDS (multipoint distribution system) frequency bands acquired from Craig Wireless.

The broadband frequencies have the potential to deliver TV and video services through a rooftop antenna.

Mr Inglis said the company intended to bid in the radio spectrum auction starting on Monday and was interested in some of the 2G frequency, but that it was not essential to its expansion plans.

"We want to be a neutral provider of high-speed broadband infrastructure that is capable of bundling services including voice, internet, data and video."

Todd Capital investment manager Brett Sutton said Walker Wireless was well positioned to capture the opportunities presented by the transition from voice to data and the convergence of telecommunications, print content and TV.

The Warehouse owner Stephen Tindall who, with Sky Television founder Craig Heatley has invested in a private capacity, said though the speed and convenience of wireless "always on" internet appealed, the people running the company were the critical thing.

"They've done their homework and already exceeded expectations in what they've delivered."

Mr Inglis has spent about $4 million to date in establishing its Cisco-powered network in Auckland, Wellington and Christchurch which transmits to about 1000 business customers from the Sky Tower and other city high points.

The service provides two-way internet access at speeds from 64Kbps up to 11Mbps using general licence frequencies in the 2.4GHz, 5.8GHz and 900MHz bands and competes with Wilson Neill subsidiary Radionet and Savoy Equities subsidiary Safetynet.

In April, Walker Wireless signed a landlord agreement with TVNZ transmission company BCL allowing it to co-site its equipment on BCL's towers around New Zealand. Four BCL sites are in use now with more to follow as Walker expands into Dunedin, Hamilton, Whangarei, Napier and Palmerston North. Walker Corporation is a 20-year-old privately held company employing 300 people and with annual revenues of about $40 million.

Mr Inglis said National Business Review publisher Barry Colman, who held a minority stake after merging Liberty Wireless with Walker's in January, had sold down his shares but retained options to buy shares when the company eventually listed.