Monday, April 9, 2007

NextWave Wireless to Acquire IPWireless for TD-CDMA

NextWave Wireless agreed to acquire IPWireless, the leading supplier of TD-CDMA network equipment and subscriber terminals, for approximately $100 million at closing, consisting of $25 million in cash and $75 million in NextWave common stock. Additional consideration of up to $135 million will be paid based on the achievement of certain revenue milestones in the 2007 -- 2009 timeframe as specified in the agreement.

IPWireless is known for its developmental work in 3GPP TDD UMTS standards. Its TD-CDMA technology has potential application as the mission-critical wireless broadband needs of government and public service agencies including police and fire departments, public safety, and medical first responders. The technology, as optimized for public safety applications, can serve the 700MHz band plan currently under consideration by the FCC for public safety applications.

In September 2006, IPWireless's TD-CDMA mobile broadband wireless technology was selected by New York City's Department of Information Technology and Telecommunications as part of a five-year, $500 million contract awarded to Northrop Grumman for the deployment of a citywide, public safety, mobile wireless network.

The IPWireless TDtv solution, based on 3GPP Multimedia Broadcast Multicast Service (MBMS), allows UMTS Operators to deliver mobile television and other multimedia services using their existing 3G spectrum and networks, without impacting their current voice and data services. A trial of TDtv technology, recently conducted in the UK by four of the largest mobile operators in Europe, demonstrated its ability to cost-effectively deliver high-quality, multi-channel broadcast services using the trial participants' existing spectrum. TDtv supports key consumer requirements including fast channel change times, reliable operation at high travel speeds, and seamless integration into small profile handsets.

Mobile broadband networks that utilize IPWireless' TD-CDMA technology have been commercially deployed in more than a dozen countries, including the Czech Republic, New Zealand, Germany, South Africa, Sweden, the United Kingdom and the United States.

NextWave Wireless and IPWireless said they will work together to expand IPWireless' product portfolio to incorporate WiMAX and/or Wi-Fi technologies for those service providers and equipment vendors that require such solutions.

http://www.ipwireless.comIn February 2007, NextWave Wireless, which develops mobile WiMAX solutions and has acquired a nationwide spectrum footprint in the U.S. and Germany, completed its acquisition of GO Networks. The Mountain View, California-based start-up provides advanced Wi-Fi network systems to service providers looking to deploy campus and metropolitan Wi-Fi systems.

In January 2006, Sprint Nextel made an additional $10 million strategic investment in IPWireless, a supplier of TD-CDMA technology. Sprint made its initial investment of $4 million in IPWireless in July 2005.

At the time, Sprint Nextel was trialing IPWireless' UMTS TD-CDMA technology in the Washington, D.C. area for broadband access for laptops, desktops or PDAs; backhaul for enterprise campus; and a wide array of Wireless Interactive Multimedia Services such as video-streaming, online gaming, document collaboration and video-conferencing.

IPWireless has raised more than $200 million since its founding in 1999, with lead backers including Bay Partners, DCM - Doll Capital Management, Gabriel Venture Partners, GIC Special Investments, J.F. Shea Venture Capital, and Oak Hill Capital Management.