Rocom eyes share-swap deal with wireless firm

By RICHARD PAMATATAU

Telecommunications entrepreneur Chris Jones will have backed his Reach Wireless company into a public listing if a share-swap deal with Auckland's Rocom Wireless is completed.

Rocom director Richard Guy said his company was completing due diligence on Reach and a deal could be signed in a few weeks.

Reach owner Chris Jones is also the major shareholder in Argent Networks.

The purchase would involve the issue of shares in Rocom at the market rate. Its shares traded at 10c yesterday.

Reach offers customers high-speed wireless internet access. It has deals with coffee chain Starbucks and BP to put its technology in selected outlets.

The company also has "hotspots", or zones offering wireless access, at Viaduct Harbour and Ponsonby Rd.

Guy said Reach had only a few hundred customers but its product and work in the mobile applications area were enticing.

Rocom has three divisions: billing, satellite phones and mobile services and products.

Its billing division bought the billing system developed by struggling telco NewCall. Guy said the satellite phone business was doing well, with strong revenue.

Rocom lost $1.8 million last year on revenue of $3.1 million, down from more than $5 million the year before.