NEW YORK-Recent developments in fixed wireless telecommunications have “led to outstanding investment opportunities,” said Albert E. Paladino, general partner of Advanced Technology Ventures, Waltham, Mass., during “The 1998 Private Equity Markets Summit,” sponsored by the Institute for International Research, New York.
As a result of the federal Telecommunications Act of 1996, more than 300 new competitive local exchange carriers are trying to challenge incumbent regional Bell operating companies for customers.
“They have to roll out their service fast, and they probably will do this wirelessly,” Paladino said.
“Few CLECs are venture-backed, (although) this is one of the best areas for private equity financing.”
The recently concluded Federal Communications Commission auctions for local multipoint distribution systems have created another interesting investment option in the fixed wireless arena.
“Equipment purchases by these new LMDS licensees will require extraordinary amounts of funding and are another opportunity for private equity,” Paladino said.
To capture some of that potential growth, Paladino said Advanced Technology Ventures has invested in several wireless component and equipment companies based in New England. These include TransSwitch, a Shelton, Conn., manufacturer of integrated circuits, and Millitech Corp., a South Deerfield, Mass., producer of broadband wireless local loop equipment.
