Wireless wrangle may end in court

9.30pm - by PETER GRIFFIN

Accusations of confidentiality breaches and a $2 million claim for damages are at the centre of a legal wrangle involving prominent Auckland property developer Andrew Krukziener and several communications companies.

Wayby Investments, parent company of liquidated wireless technology company Freedom Vnet, claims its concept for constructing a wireless network was used in the construction of the RoamAD wireless hotspot network in central Auckland.

Wayby is taking legal action against Nomad Wireless Technology NZ (RoamAD), Nomad Communications, WorldxChange Communications and three individuals - Andrew Krukziener, Bruce Brown and Francis Wynne.

Wayby claims the defendants broke confidentiality agreements they signed during business discussions two years ago.

The defendants have denied the allegations.

The RoamAD network covers a few streets in downtown Auckland but has yet to go commercial, hamstrung by lack of interest from potential telco partners.

Krukziener, through his venture capital company, undertook wireless technology trials along with Nomad and tolls operator WorldxChange.

But Wayby says it too was closely involved in those trials. Krukziener is an investor in Nomad, while Nomad has a contract with WorldxChange for telephone interconnection.

Headed by Evan Read until December 2001, Freedom Vnet said it had developed a "roaming, cellular style internet protocol wireless network" that does not require "line of sight" with wireless base stations.

The RoamAD network generally operates on this model, with a user "handed-off" from one base station to another as they travel around the 'wi-fi' coverage area - much like a mobile phone user would.

But Freedom was to operate the network on a "community model" whereas RoamAD is seeking a purely commercial business plan.

Nomad denies it has used Wayby's concepts. Chairman Martin Levy said he had sought top legal advice over Wayby's claims and would seek in the new year to have the case thrown out.

Freedom Vnet New Zealand went into liquidation in July owing unsecured creditors over $188,000. Among the largest creditors are KPMG Legal, TelstraClear and Wayby Investments itself.

Another deal which would have seen Krukziener along with co-investors Brown and Wynne purchase 35 per cent of Wayby for $535,000 was also briefly on the table.

Wayby claims that deal should have been honoured. Wayby is also seeking to slap an injunction on WorldxChange that would prevent it from working with other wireless operators.

WorldxChange director Cecil Alexander said he would fight the action if necessary.

Wayby lodged its claim against the defendants at the High Court at Auckland on December 4, with a next court date scheduled for mid February.