SAN JOSE, Calif.—Arraycomm Inc. announced that its Australian subsidiary has formed a consortium that includes Vodafone Australia to launch its I-Burst mobile broadband Internet access system in Australia. The commercial rollout of the service is scheduled to start in mid-2003.
The $14.3 million consortium includes Australia Internet service provider OzEmail, telecommunications project manager Total Communications Infrastructure and Crown Castle Australia, along with mobile operator Vodafone Australia.
Phase one of the network, a pre-commercial rollout of the system in Sydney, Australia, will include 10 radio communications base stations providing coverage of 150 square kilometers. The commercial rollout is expected to begin in mid-2003. The system will be deployed in a 5-megahertz band of time division duplex unpaired third-generation spectrum.
CKW Wireless, a wholly owned Arraycomm subsidiary, purchased 3G spectrum in all Australian capital cities last year for about $4.6 million. At the time, Arraycomm said it chose the Australian market because it offered the only auction that sold unpaired spectrum separate from paired spectrum.
The Australian spectrum is available for use in October.
“Australia has a very advanced telecommunications and mobile industry, but the penetration of broadband Internet access stands at less than 5 percent,” said Martin Cooper, ArrayComm chairman and chief executive officer. “This technology has the potential to offer Australians an unprecedented opportunity to do everything they want on the Internet … quickly, affordably and with the freedom to move.”
Richard Alston, Australia’s minister for communications, information technology and the arts, said he welcomed the announcement and the new competition, which will drive broadband services in the country. “It is clear, both here and overseas, that both fixed and mobile wireless technologies provide an exciting alternative broadband platform to DSL, cable and satellite,” Alston said. “Importantly, wireless technologies, such as I-Burst, have the potential to provide a ‘last mile’ solution, particularly in rural and regional areas.”
The technology, which has been slated for testing in the San Diego area using the Federal Communications Commission-licensed spectrum, reportedly creates a carrier-grade wide area wireless data network.
Japan’s Hanaro Telecom plans to launch a high-speed mobile Internet service in June 2003 using i-Burst, with equipment supplied by Kyocera, which recently licensed the technology from Arraycomm.
ABN AMRO is advising the Australian consortium on its financial strategy, Arraycomm said.
Qualcomm Inc. paid $79 million for 10 megahertz of paired spectrum in all Australian capital cities through a company called 3G Investments (Australia) Pty. Ltd. during the Australian 3G auction last year.
