Melbourne-based wireless data services provider dotWAP has acquired one of
Australia’s largest data-only wireless networks, acquiring United Wireless
from Austar in a cash and stock transaction.
Under the deal, dotWAP has paid Austar $3 million in cash and given 1.75
million dotWAP shares for the network, and will change its name to United
Wireless when it assumes management of the service.
United Wireless owns and operates the country’s only 400Mhz Mobitex wireless
data network, a proprietary data optimised network designed by Ericsson. It
is unique because unlike 3G networks, it does not apply time-based fees but
charges according to the data downloaded.
The network currently provides services to emergency services, courier
companies and wireless Internet providers such as dotWAP, and will support
dotWAP’s Australian operations by providing wireless network access for the
NEO1 and future devices.
dotWAP will manage the network from its Network Operations Centre in the
Sydney suburb of St Leonards. This centre manages the $30 million network9s
35 base stations, that reach around 70 per cent of Australia9s urban
population outside Tasmania and the Northern Territory.
The network currently provides services to emergency services, courier
companies and wireless Internet providers such as dotWAP, and will support
dotWAP’s Australian operations by providing wireless network access for the
NEO1 and future devices.
As United Wireless has licences to large parts of the 400Mhz spectrum, it
reigns as the only Mobitex network in Australia, and its data-based rates
will give dotWAP access to a cost-effective service to provide.
The purchase complements dotWAP’s own wireless efforts: the company9s
current client/server architecture is designed to operate on Mobitex packet
switched wireless data networks with Palm V organisers. dotWAP is also
finalising agreements to supply its Wireless Application Gateway, the
infrastructure and software backbone that supports its wireless data
services, to Mobitex operators in Europe and Asia.
The wireless network will maintain and develop its own direct customer base
through the supply of a range of vertical wireless data solutions to
complement those in place already. dotWAP also intends to expand the network
and improve coverage and traffic capacity over the longer term, to develop
its new business.
United Wireless’ network currently has 9000 devices connected to it, and the
company anticipates this will grow to 40,000 (including dotWAP9s customers)
by mid 2002.
The purchase by dotWAP comes hot on the heels of the finalisation of its own
acquisition. Australian Technology Services (ATY’ on the Australian Stock
Exchange), which recently announced its Heads of Agreement to take a
controlling stake in dotWAP, has now formally completed the transaction with
major dotWAP shareholders. Under the offer, shareholders will receive 33 ATY
shares plus ten 20 cent options for each dotWAP share.
ATY has also agreed to move to a full bid to 100 per cent of dotWAP in
future, subject to due diligence.
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