NextWave Buys IPWireless For Its Public Safety And Mobile TV Expertise
NextWave said it will initially pay about $100 million for IPWireless, with another $135 million earmarked for future payments if certain revenue milestones are achieved.
NextWave Wireless's grand strategy became clearer Monday as it announced it would acquire IPWireless, which has successfully developed pioneering services and products for mobile TV and public safety networks.
NextWave, which has been developing components for Wi-Fi and WiMax network technologies, said it will initially pay about $100 million for IPWireless, with another $135 million earmarked for future payments if certain revenue milestones are achieved. IPWireless is a pacesetter as a supplier of TD-CDMA mobile broadband technology.
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"IPWireless and NextWave will work together to expand IPWireless' producet portfolio to incorporate WiMax and/or Wi-Fi technologies for those service providers and equipment vendors that require such solutions," said Allen Salmasi, chairman and chief executive of NextWave, in a statement.
NextWave noted that IPWireless' TD-CDMA technology has been selected by New York City to provide key pieces of the city's new public safety wireless network. The firms added that IPWireless' technology lends itself for use with the 700-MHz band that the FCC is preparing to auction off.
Another reason for the acquisition, said NextWave, is the recent introduction by IPWireless of its TDtv system. TDtv recently has been tested by four large mobile operators in Europe. The TDtv service features fast channel change times, reliable operation at high travel speeds, and seamless integration into small handsets. NextWave indicated it would pair its PacketVideo subsidiary offering with the TDtv service.
IPWireless is headquartered in San Bruno, Calif., and has research and development facilities in the United Kingdom.