Wireless network's $20m growth plan

By CHRIS BARTON

Walker Datavision is seeking $20 million to expand its high-speed wireless data network and has appointed JB Were to manage raising the capital.

General manager Paul Ryan said the investment would enable the company's Walker Wireless division to more rapidly deploy wireless infrastructure to other cities throughout New Zealand.

Walker Wireless has already spent about $2 million on its Auckland network, which transmits from the Sky Tower and other high points around the city, providing two-way internet access at speeds ranging from 64Kbps up to 11Mbps.

Users install a dish antenna and a communication device to transmit and receive the high-speed data stream over general-licence radio frequencies in the 2.4GHz, 5.8GHz and 900MHz bands.

Since its start in September, the network has won over about 600 Auckland businesses, not just for its high-speed internet access but also for the cost savings of bypassing landline telecommunications. The company also provides wireless connectivity of 100Mbps over "line of sight" distances of up to 9km to corporate customers.

The capital injection comes a week after National Business Review publisher Barry Colman announced he had a controlling stake in Alternative Futures and would spend up to $15 million in the next 18 months to expand its competing wireless network and on other internet bandwidth investments.

Rod Inglis, founder and managing director of parent company Walker Corporation, said the raising of $20 million had been planned for months and was because wireless bandwidth demand was outstripping supply.

JB Were head of corporate finance Paul Harris said the firm was completing due diligence and expected to be raising capital, most likely by private placements, in January.

Mr Inglis said that in addition to expanding the network, Walker Wireless would use the capital to scale up capacity as more subscribers came online and for research and development on new wireless services. The company was also eying expansion into Australia and Asia-Pacific.

The New Zealand network is due to expand to Wellington and Christchurch early in the new year. Hamilton and Hawkes Bay are likely to follow soon after.