Walker Wireless buys frequencies

By CHRIS BARTON

Walker Wireless has bought nationwide New Zealand radio frequencies in the 2.3GHz band from Canadian-based Craig Communications in a deal worth $6.5 million.

"It allows us to enhance our wireless delivery by being able to offer a bundle of services including voice and data," said Rod Inglis, managing director of parent company Walker Corporation.

He said the new frequencies were complimentary to the existing general licence spectrum now used by Walker Wireless but not subject to potential interference problems from overcrowding.

The 2.3GHz MDS (multipoint distribution system) frequency bands were sold by government auction in July 1990, but except for limited use for digital TV during the America's Cup, have not been used.

Since their sale in 1990 to Multiband Television, the two 8MHz wide bands now owned by Walker Wireless have appreciated considerably in value. The frequencies were on sold about three years ago to Craig Broadcast Systems for about $1 million.

Walker Wireless chief executive Paul Ryan said customer equipment required for the new frequencies was essentially a modified cable modem connected to a wireless transceiver. He expected to be able to offer bundled voice and data services to businesses within four to six months.

Though the broadband frequencies have the potential to deliver TV and video services to residential customers, Mr Ryan said Walker Wireless's focus remained with business. The strategy was to be a "neutral, fast, always-on wireless access network" providing internet, data transmission, voice and content services in partnership with other providers.

The acquisition comes amid increased speculation that Walker Wireless is about to list on the stock exchange to raise about $20 million for future expansion of its wireless network. It has spent about $4 million to date beefing up capacity in its Cisco-powered network available in Auckland, Wellington and Christchurch.

Mr Inglis and Mr Ryan refused to comment on the listing rumours. Late last year the company appointed JB Were to oversee the raising of $20 million capital.

The Walker Wireless network, which transmits from the Sky Tower in Auckland and other high points, provides two-way internet access at speeds from 64Kbps up to 11Mbps. Walker Wireless competes with Wilson Neill subsidiary Radionet and Savoy Equities subsidiary Safetynet which offer wireless internet access.

A month ago, Walker Wireless signed a landlord agreement with BCL allowing it to co-site its equipment on BCL's transmission towers around New Zealand. Four BCL sites are in use now with more to follow as Walker expands into Dunedin, Hamilton, Whangarei, Napier and Palmerston North. Walker Corporation is a 20-year-old privately held company employing 300 people and with annual revenues of about $40 million.