Chariot buys 'WiMAX' network

Stuart Corner
Monday, 31 October 2005 17:10

IT Industry - Deals

Chariot Internet is to buy Victorian wireless broadband access provider, Omninet Wireless Pty Ltd.

Omninet primarily uses Motorola Canopy equipment to service a number of  major clients including Melbourne University, Northeast Water, South Gippsland Water Authorities and ISP Dragnet Internet Services in Albury-Wodonga. It has 36 base stations.

Motorola's Canopy equipment is 'pre WiMAX' and Motorola has committed to being compatible with the emerging WIMAX standard. Chariot says it believes a WiMAX capable wireless network will be a key part of Australia's telecommunications future. "As bundling options increase in Chariot's suite of products, broadband customers utilising WiMAX will be provided with additional advantages in lower cost telephone options in both urban and regional markets."

Chariot says it "believes WiMAX independence from the limitations of exchange-based broadband also delivers to Chariot for the first time greater margin, customer reach, product mix and flexibility over the 'last mile' of customer traffic."

WiMAX emergent wireless technologies has an expected range of 30 kilometres compared with a present ADSL limit of approximately 4 kilometres.

Chariot notes that "This capability can supplement or potentially, entirely replace, traditional telephone and internet connections. The technology is equally suited to both urban and regional areas where conventional terrestrial broadband infrastructure is either limited or non existent."

Chariot CEO, Julian Horlin-Smith, said: "No longer will we be performance and cost bound by the restrictive nature of this 'last mile' which has historically, been the exclusive domain only of the largest telco infrastructure providers."

The purchase will be funded partly by cash and partly by the issue of 215,000 70 cent Chariot shares.