RealTime IT News

NextWave Pays $13.3M For Go

NextWave Wireless said it will pay $13.3 million to acquire privately held Go Networks. The deal gives NextWave, which develops WiMAX gear, entry into the mobile Wi-Fi arena.

Mountain View, Calif.-based Go Networks becomes a NextWave subsidiary.

The acquisition follows NextWave's acquisition of wireless spectrum in Europe and the U.S. The purchase follows field tests of gear by several municipal Wi-Fi vendors.

"After extensive field testing of several metro-scale Wi-Fi network systems, we selected Go's Metro Broadband Wireless (MBW) system as the most competitive and cost-effective," NextWave CEO and President Allen Salmasi said in a statement.

The carrier-class MBW system employs Go Network's xRF technology, a proprietary beamforming antenna.

Salmasi said Go Networks' MBW will complement its WiMAX product line, giving customers the option of using licensed or unlicensed spectrum.

In recent weeks, NextWave, formed in 2005, has won licenses in the U.S. and in Germany. The FCC granted NextWave 154 licenses in the 1.7GHz and 2.1GHz frequency bands, covering 63 million people in 13 markets, including New Orleans, Pittsburgh, Indianapolis, Sacramento, Calif., and Puerto Rico. NextWave paid $115.5 million for the licenses.

NextWave also paid German regulators $23.1 million for 28 broadband licenses in the 3.5GHz band. Inquam Broadband, a joint venture with a company owning wireless networks in Portugal and Romania, purchased the spectrum.

As part of the financial terms, NextWave also said it will pay Go Networks as much as $25.7 million in stock if certain milestones are achieved over the 18 months following the deal's closing in he first quarter of 2007.