Intel Keen to Support Kiwi Wireless Networks

INTEL’s spokesman for New Zealand and Australia, Dan Anderson, says the chip giant’s venture capital arm might invest in New Zealand wireless broadband providers if “the right opportunity came up”.

Intel Capital got out its cheque book in Australia last month, pumping A$37 million of much-needed fresh equity into Sydney-based broadband provider Unwired.

Whether such largesse might be seen on this side of the Tasman remains to be seen.

Wireless broadband network providers such as Unwired and New Zealand’s Woosh face a tough task building sustainable businesses from scratch.

This is given the substantial investments they must make up- front rolling out their networks, setting up their billing systems and customer service infrastructure and marketing their services.

Meanwhile, hardware vendors such as Intel are raking in profits selling components for the high-spec notebook computers that consumers need to access the networks — giving them a strong incentive to see wireless network providers flourish.

Mr Anderson says Intel Capital’s investment in Unwired is relatively large but is not a one-off.

Intel Capital has made similar investments in Europe, the US and Chile and Mr Anderson says he would be surprised if it hadn’t also scouted opportunities in New Zealand.

He says Intel is keen to promote all wireless broadband network operators but is more likely to invest in those which adopt the WiMax standard, which is still being ratified.

Intel will incorporate WiMax capability as an integrated feature in its computer chipsets from 2007.

Unwired has agreed to ensure its wireless network evolves to meet the WiMax standard. At the moment it is using technology supplied by US firm Navini, which Navini says is a precursor to WiMax.

Embracing WiMax would prove far harder for Woosh, which has followed an alternative technology standard called UMTS TDD.

Woosh’s technology has more in common with technology standards promoted by 3G mobile phone network operators than traditional WiFi operators.

In most other respects Unwired and Woosh are not dissimilar. Unwired has about 28,000 subscribers to Woosh’s 16,000 and both sell broadband connections through retailers — in Woosh’s case through partnerships with Dick Smith and Harvey Norman. The fact Unwired sold through retailers was a factor in Intel Capital’s decision to invest in the company, says Mr Anderson.

He says state-owned broadcaster BCL is carrying out WiMax trials in New Zealand.