Software maker NextWave Wireless has sold a 75 percent stake in mobile TV developer IPWireless 18 months after acquiring the firm for $100 million.
According to reports, IPW Holdings, an entity formed by the senior IPWireless management team, has taken 75 per cent of the stake for $1 million, agreeing to pay an additional half a million dollars to cover the transaction costs.
Software maker NextWave announced last year that it was getting out of network infrastructure business.
San Bruno, California-based IPWireless, which pioneered 3GPP mobile broadband and multimedia broadcast technologies, is now saying that it would re-launch the business on the strength of what it calls “heritage”.
The Company said it arranged for financing with a strategic partner and believes these funds will put it on a secure financial footing to provide continuing support to its existing and new customers.
“Not only do we have the right team and financial resources in place to continue to build on this excellent track record but also the flexibility and strategic focus that are unique to management-controlled ventures.” said Dr. Bill Jones, co-founder and CEO of IPWireless.
With the closing of the transaction, IPWireless returns to being a private, independent company that will be led by the entire management team that went to NextWave. Yet, NextWave Wireless (News - Alert) will retain a minority ownership stake in the company.
IPWireless appears to be counting on 3rd Generation Partnership Project (3GPP) standards that created technical specifications for UMTS, the evolution of GSM, the world’s dominant standard for mobile communications.
In fact, IPWireless was the first vendor to offer commercial UMTS based solutions for a number of global spectrum bands, including the unpaired 1900MHz and 2500MHz bands, to offer an all-IP mobile broadband and UMTS broadcast solution.
In 2007, IPWireless said it had provided more than 600 base stations and 2,000 sectors of capacity to power T-Mobile’s (News - Alert) “Internet 4G” service, which covers more than 60 percent of the Czech Republic and delivers over 10 terabytes of data every day.
Narayan Bhat is a contributing editor for TMCnet. To read more of Narayan's articles, please visit his columnist page.
Edited by Tim Gray