Teleunit signs licensing agreement with Wirlink to provide Wireless Local Loop throughout Tuscany

February 8, 2005

1 Min Read

PERUGIA, Italy -- Teleunit S.p.A, the provider of fixed line telephony, wireless broadband, international calling cards, and premium access number phone products throughout Italy, has signed an agreement with Wirlink S.r.l. to provide Wireless Local Loop (WLL) throughout Tuscany under its license. The Company entered into discussions with Wirlink following delays in the auction for new licenses by the Italian Telecommunications Ministry ("ITM"). Wirlink originally acquired the licence from the ITM in 2002 but has not exploited it to date.

This agreement will enable Teleunit to utilise over half of the available WLL frequency for the provision of broadband services in areas of the Tuscany region for the next 18 years until the expiry of the license. This will provide enough capacity for Teleunit to fulfil its business plan in Tuscany. Under the agreement Teleunit will pay Wirlink a total of EUR 425,000 in three tranches during the first half of 2005. This significantly reduces the cost associated with the WLL roll-out compared to the originally estimated EUR 800,000 cost of acquiring the Tuscany licence through the government auction, a saving of EUR 375,000.

Gianfranco Cimica, Chief Executive Officer of Teleunit, commented:

"This agreement with Wirlink will allow Teleunit to start rolling-out Wireless Local Loop throughout the Tuscan region. We already have the infrastructure in place along with existing demand for WLL from SMEs in Tuscany. This is an important agreement for Teleunit and fulfils our promise to develop WLL further in Italy, allowing the small to medium sized businesses in the area more effective internet access for better value."

Teleunit S.p.A

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