Company Background
Unwired - company history
Unwired was formed on 11 August 2000 through the incorporation of Unwired Australia Pty Limited, and through initial equity capital raising undertaken in 2000 and 2001 which raised a total of $128.8 million. Those funds were used to purchase spectrum licences and to fund the initial start-up and planning costs for Unwired's fixed wireless access (FWA) network.
The company purchased its spectrum licences in the WiMAX designated 3.4-3.5 GHz range from the Federal Government at auction in 2000.
Unwired then purchased a small additional quantity of 3.4 - 3.5GHz spectrum licences from pay TV operator Austar in 2001. This brought Unwired's total spectrum licence ownership to 96.5MHz in Sydney, 100MHz in Melbourne and 65MHz in other states, covering about 90 per cent of the population for a total investment of $110 million.
In April 2003, Unwired chose Navini Networks' ground breaking non-line-of-sight technology for its network. In November 2003, Unwired Australia went to the financial markets with plans to build and operate a FWA network and raised new capital of $100 million.
In December the company undertook a reverse takeover of Breathe Group, raising a further $5 million in a retail offer then relisting as Unwired Group Limited on the Australian Stock Exchange on 23 December 2003.
In October 2007 Network Investment Holdings Pty Limited (NIH), a wholly owned subsidiary of Seven Network Limited (ASX:SEV), made a takeover bid for Unwired. Unwired became a wholly owned subsidiary of NIH in February 2008.
Unwired's Business
Unwired's objective is to be the largest wireless broadband provider in Australia providing the country's first alternative local loop to the incumbent, Telstra. It is seen as an international authority in wireless broadband, with carriers from around the world regularly seeking its expertise on building a wireless broadband network and business.
Unwired's Sydney-wide network launched commercially on 19 August 2004 and today covers more than four million Sydneysiders.
In 2005, it prepared for its expansion into other centres and for its move to the Mobile WiMAX standard forming alliances with key players in the industry.
In July 2005, Unwired traded a portion of its 3.5GHz spectrum licences to AUSTAR while AUSTAR traded a portion of its 2.3GHz spectrum licences to Unwired. This gave Unwired access to 2.3GHz and 3.5GHz spectrum covering 65 per cent of the total Australian population, mainly in the major metropolitan centres but also some regional areas in Western Australia, New South Wales and Victoria. Unwired's and Austar's networks will be interoperable so customers will be able to roam across both networks and, when WiMAX is commercially available, around the world.
In late August 2005, Unwired signed a collaboration agreement with Intel to accelerate the adoption of Mobile WiMAX based wireless broadband in Australia. At that time, Intel also invested AUD$37 million in Unwired.
In April 2006, the company launched its Melbourne network. The initial phase of its Melbourne network was completed in the second half of 2006.
The Unwired service is ideal for all Australians - especially those who want to turn off the tired copper phone line. This is because its offering is 'plug and play' - it requires no professional installation and can be set up in minutes. It offers peace of mind with its 7 day money back guarantee. It is portable so can be used anywhere within Unwired's coverage area and it does not require a phone line.
Unwired offers a wireless modem via its website and major retail outlets including Harvey Norman, Dick Smith, Tandy, Dick Smith Powerhouse, Domayne, Harris Technology, Clive Peeters and Co-op book shops (Sydney only).
Unwired's Network
In 2003 Unwired selected Navini Networks, since bought by Cisco, as its FWA network equipment supplier.
Cisco is a leader in the development of non line-of-sight FWA base stations and self install modems for the delivery of high speed internet access, voice and multimedia services. Its Ripwave system features beam forming antennas, multipath radio, synchronous CDMA technology and a high path loss capability. Navini has more than 50 commercial customers who are planning to move to WiMAX, in more than 30 countries.
Unwired's network covers most of Sydney and 35% of Melbourne currently consists of more than 90 base stations. The company will continue to upgrade existing sites and add new ones as its customer base grows.
Unwired's network delivers similar speeds to ADSL with the added benefit of portability, and eventually with WiMAX, full mobility, even faster speeds and national and global roaming.
About Mobile WiMAX
The speed of wireless technology adoption means that rolling out a global wireless broadband standard is critical. Standards will deliver lower cost network infrastructure, the ability to roam worldwide, low cost modems and eventually embedded chips in portable devices such as laptops and mobile phones.
In December 2005, the Institute of Electrical and Electronics Engineers (IEEE) ratified the 802.16e standard. This standard, known as Mobile WiMAX, will be the global standard for wireless broadband and will deliver high speed mobile connectivity faster than current ADSL broadband speeds or other non-standard wireless alternatives.
Locally Unwired is in the best position to migrate to Mobile WiMAX and has a clear path toward making true mobile wireless broadband a reality.
Unwired's 2.3GHz and 3.4 - 3.5GHz spectrum falls within the spectrum bands nominated by the WiMAX Forum. It has the majority of spectrum in these bands in major centres and it has sufficient spectrum for a mass market, national broadband offering.
Carriers and equipment manufacturers are working to develop equipment and services to match the requirements of the IEEE 802.16e standard and Mobile WiMAX profiles. Suppliers are expecting to be able to provide commercial quantities of Mobile WiMAX equipment that meet WiMAX Certification requirements from 2006 onwards.
Equipment and chip manufacturers, including Intel, Samsung, Motorola, Navini and Alcatel, are developing Mobile WiMAX technology and pre-WiMAX equipment is now readily available.
With standards ratification will come the other advantages of international roaming and falling costs for equipment and modems. As more and more manufacturers commit to producing WiMAX equipment, costs will fall further.
WiMAX's speed, low cost, and mobility are important but so is the support this standard is receiving from around the globe. There are more than 360 members of the WiMAX Forum, including Intel, Samsung, Korea Telecom, British Telecom, AT&T, Bell South, Motorola, Microsoft, Alcatel, Disney and Nokia.