Coalition cash for internet venture

By VERNON SMALL deputy political editor

The Government will today announce funding of more than $1 million for a mobile internet project, highlighting its willingness to give incentives to businesses contributing to "a knowledge society".

The decision, driven by Deputy Prime Minister Jim Anderton and Research, Science and Technology Minister Pete Hodgson, will be held up as evidence that foreign investment can be attracted under the Government's economic policy without the need for corporate tax cuts.

Timed to capitalise on last week's Knowledge Wave conference, the money will go to a joint venture between telecommunications giant Ericsson and local software company Synergy International, which was unveiled last November.

At the time, Ericsson and Synergy said they planned a multimillion-dollar investment to develop mobile internet applications at a "centre of excellence" which would provide 150 high-tech jobs. The size of the Government's incentive package was not disclosed at the time.

The sum is likely to be the biggest allocation yet from more than $3 million set aside in the Budget for major investments with high growth potential.

The new joint venture said it planned to develop mobile internet products and services for here and overseas. Its head office would be in Wellington.

Chief executive Stephen Crombie said the venture aimed to cash in on the expected boom in mobile internet. "In two years, there will be more users of mobile phones than wired phones around the world and, in three years, mobile internet technology will overtake the wired internet."