Subsidiary of ex-miner hits paydirt

By DANIEL RIORDAN

Spectrum Resources' software subsidiary, WEL Technology, has secured a $1.33 million licensing deal with United States software giant Lucent Technology.

WEL Tech, which specialises in billing solutions and customer management software, caught Lucent's attention at a recent US trade show, says Spectrum director Rob Levison.

WEL Tech will integrate its PV2 software into Lucent's flagship billing product, Arbor/BP. The deal is the first time WEL Tech's product has been used in the telecommunications industry.

Lucent (formerly part of AT&T) is the seventh-largest technology company in the US, with a market capitalisation of $414 billion.

Spectrum shareholders last month approved their company's change in direction from a miner to an e-commerce investor, and its $2 million acquisition of WEL Tech from WEL Energy.

However, $750,000 of that purchase price was conditional on WEL Tech clinching before August 31 a deal with "a leading international software company," now revealed as Lucent.

In another high-tech success, Telemedia Networks International, founded by Aucklander Chris Jones and listed on the Australian Stock Exchange, has beaten off stiff international competition to clinch a $10 million deal with Sir Richard Branson's fledgling Virgin Mobile business.

Under the five-year deal, Telemedia will supply the mobile switching infrastructure Virgin will need to set up its Australian operations.

Mr Jones hopes that if the Australian rollout goes smoothly, Virgin Mobile will use Telemedia as it launches into 30 other countries.

He said eight other companies, all publicly listed and most from the United States, competed for the Virgin deal.

About 60 of Telemedia's 140 staff are employed in research and development roles in Auckland. Mr Jones' 70 per cent stake is worth about $370 million.