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Telecommunications Unwired's WiMAX prospects growing, but so are costs
Telecommunications Unwired's WiMAX prospects growing, but so are costs | Unwired's WiMAX prospects growing, but so are costs |
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| by Stuart Corner | |
| Thursday, 25 October 2007 | |
  
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"The industry projections for the number of such Mobile WiMAX devices and their utilisation rates increase significantly with every update. Unwired is in the unique and enviable position of being able to provide high speed broadband access to any such Mobile WiMAX certified device in its coverage area - the major metropolitan areas of Australia covering 65 percent of its population - because it holds licences for virtually all of the relevant core WiMAX spectrum." However he added: "This ownership...brings with it the responsibility of ensuring that the emerging demand, greater than previously envisioned, can be satisfied. Our business planning processes enable us to quantify, with ever higher levels of certainty, the funding requirements for this network...The peak cumulative cash outflow to enable a fully deployed and operating network. This includes initial capex, marketing launch costs and ongoing operating expenses until the business turns cash positive." He said that: "When the decision is made to build and deploy a mobile WiMAX network all avenues of funding available to Unwired will be explored. We will update shareholders at that time. In the meantime, we recognise that continuing uncertainty about funding options has had a negative impact on our share price." Burgess gave no indication as to what the estimated funding requirements were, but will likely not be a problem if Seven Network is successful in its takeover offer. Burgess said directors had unanimously recommended that shareholders accept the offer amongst other reasons because of "the certainty of value the offer represents relative to the uncertain future trading prices of Unwired given risks associated with the potential WiMAX network rollout and the associated required funding."{moscomment} |
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