Intel Invests $28M in Unwired

Intel Capital has agreed to invest in secured convertible notes issued by wireless broadbad carrier Unwired with a value of AUD$37M

August 25, 2005

2 Min Read

SYDNEY -- Unwired Australia, a wireless broadband carrier, andIntel Corporation announced today that Intel Capital has agreed to invest in securedconvertible notes issued by Unwired with a face value of AUD$37 million (approximatelyUS$27.9 million at present exchange rates). The investment is part of the companies’ effortsto advance the deployment of WiMAX networks.Unwired will use the proceeds primarily to expand its services to other majorAustralian cities.

As part of the announcement, the companies have agreed to jointly promote mobilewireless broadband capabilities using WiMAX networks in Australia. Unwired plans to adoptfuture Intel products that support the upcoming IEEE 802.16e standard for WiMAX solutionsintended to be deployed in infrastructure equipment and notebooks.

“Continued investment in WiMAX technology is strategically important for theindustry,” said Arvind Sodhani, Intel Capital president. “It will enable the provisioning of fast,full-fledged broadband Internet access to a vast proportion of the population in an acceleratedtime frame.”

“Twelve months ago wireless broadband was on the horizon, but today it’s anaccepted and trusted option for thousands of customers as evidenced by the rapid growth ofcustomers for our Sydney business,” said Unwired CEO David Spence. “Intel Capital’sinvestment will enable us to make wireless broadband available to a greater number ofAustralians and to quickly move to WiMAX in other cities as equipment becomes available.”

WiMAX, which stands for Worldwide Interoperability for Microwave Access, is astandards-based wireless technology that provides high-speed broadband connectivity overlong distances to homes, businesses and mobile wireless networks. The upcoming IEEE802.16e version will offer increased broadband Internet access mobility.

“The introduction of the upcoming version of WiMAX will help mobile wirelessbroadband become absolutely mainstream in the marketplace,” Spence said. “Unwired willbe in the unique position of having access to the majority of the WiMAX-designated 3.5 GHzand 2.3 GHz licensed bands in Australia’s major metropolitan areas.”Unwired will initially deploy technology from U.S.-based broadband wireless accesssolutions provider, Navini Networks, for its WiMAX networks. Dual-mode customermodems and base stations, which can operate Unwired’s current proprietary technology andWiMAX-based technology concurrently, will be available in the first half of 2006.

“The upcoming WiMAX network Unwired plans to deploy will demonstrate how aservice provider can deploy this standards-based technology across multiple metropolitanareas potentially covering thousands of square kilometres and serving millions of people,”said Varun Kapur, co-director of Intel Capital, Asia-Pacific Region. “It’s a model that otherleading service providers around the world could and should replicate.”

Unwired Australia Pty. Ltd.

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