WebSky Buys WiMax Firms

WebSky announces agreements to acquire two Argentine carriers, owners of WiMax-ready radio frequency in Argentina

October 11, 2006

2 Min Read

SAN FRANCISCO -- WebSky, Inc. (Pink Sheets:WKYN) announced today that its Argentine subsidiary, WebSky Argentina S.A. (“WSA”) has entered into agreements to acquire 95% of Infotel Argentina, S.A.,. a Buenos Aires based telecommunications company. WebSky further announced that WSA has also entered into a similar agreement to acquire 90% of another Buenos Aires-based telecommunications company, the latter company’s identity being the subject of a non-disclosure agreement at this time. Both of these acquisitions will require the authorization of Argentine regulatory authorities. The two Argentine entities together are owners of radio frequency spectrum licenses, and other related licenses, issued by the Argentine government for 42MHz of bandwidth in the 2.5GHz spectrum. The licenses cover a radius of 112.5 miles from the center of the city of Buenos Aires, covering a population of over fifteen million people.

WebSky noted that these new agreements are the culmination of a series of previous agreements between the Company and the two companies and replaces a joint venture agreement that had previously been entered into with Infotel.

“WebSky is extremely pleased that WSA has entered into these agreements with these companies with their highly desirable 2.5GHz frequency for the world’s eighth largest metropolitan area,” commented Douglas Haffer, President and CEO of WebSky and WSA.. “We believe that the amount of spectrum to be acquired under these agreements will permit WSA to launch the most robust and efficient WiMAX system in the region,” noted Eduardo Axtle, Vice President for Frequency Acquisitions. Haffer noted that while both 3.5 GHz and 2.5 GHz spectrum, among others, have been certified for WiMAX deployments globally, most analyses of these spectrum bands conclude that the lower 2.5 GHz frequency is significantly more efficient for the deployment of the newest and competitively attractive mobile WiMAX systems.

WebSky Inc. (OTC:PK WKYN) 

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