Wireless net ventures merge

By ADAM GIFFORD

National Business Review publisher Barry Colman is folding his fledgling wireless internet business into the established player in the field, Walker Wireless.

Walker Corporation managing director Rod Inglis said Mr Colman would have a minority stake and be a director of the Walker Wireless subsidiary.

Mr Inglis remains executive chairman and the chief executive is Paul Ryan.

Mr Colman bought into wireless when he took a controlling stake in Penrose-based Alternative Futures Ltd (AFL) in November.

He said he intended to spend up to $15 million over 18 months on internet-related investments.

AFL's wireless business, which he renamed Liberty Wireless Internet, had acted as a reseller for Walker Wireless services, but after an acrimonious split over "irreconcilable differences" it tried to develop a competing network.

Mr Inglis said the technical limitations of this approach didn't take long to emerge.

"They were finding the technical going tough. We have been in wireless data networks for 15 years so we have a huge amount of expertise," Mr Inglis said.

"We thought there were so many technical difficulties such as getting the high points, getting bandwidth, interference, we should pool our resources," he added.

"There is a huge push to do it properly."

Walker Wireless has a point of presence on the Sky Tower, giving it coverage the Liberty operation would struggle to match.

Mr Inglis said AFL's internet service provider, Business Internet Solutions, would resume its reseller relationship.

"We see all providers as resellers," Mr Inglis said.

"What is happening round the world is providers still use traditional telcos to deliver bandwidth, but they're increasingly looking to wireless providers for delivery."

Walker Wireless's Virtual Cable Network can deliver up to 100 megabits a second, but Mr Inglis said so far no customer had asked for more than 5 megabits a second.

Mr Colman said Liberty Wireless Internet brought to the merger some cash and a point of presence in Auckland, Christchurch and Wellington.

"We had eight POPs ready to go on-stream in the next six weeks, once we'd finished getting the consents and building reports, so we were on the verge of major duplication," Mr Colman said.

Apart from the merger, Mr Colman intends to participate in Walker's $20 million dollar capital raising, being organised by merchant bankers JB Were.