BEACHWOOD, Ohio-NextWave Telecom Inc. agreed to purchase $50 million in wireless personal communications services products and services from The Allen Group Inc.
The products will be used in NextWave’s national Code Division Multiple Access-based PCS network.
According to the long-term agreement, NextWave may purchase software and engineering services, base station antennas, and repeaters and boosters to expand cell site coverage and provide coverage in hard-to-reach areas, the company said.
In return, The Allen Group will make an equity investment of $5 million in NextWave and will extend up to $50 million in secured financing for products purchased from Allen.
NextWave was the highest bidder for 63 licenses during the C-block PCS auction; the licenses are contested and none have yet been granted.
“We are delighted to have been selected by NextWave as a strategic supplier for our products and services,” said Robert G. Paul, president and chief executive officer of Allen.
“This is recognition of the broad range of quality products and services that Allen has available for wireless communications infrastructure development around the world. NextWave is expected to be one of the major new participants offering wireless telephone service in the United States.”
