Wild Wireless Activity

By ISP-Planet Staff

February 04, 2003

A spate of mergers and acquisitions, as well as the coming wave of earnings releases, show a great deal of optimism in the wireless Internet business sector.

The Motive for the Jump

Motive Communications acquired BroadJump, Inc. and released a provisioning service that can handle subscribers from activation through the life of the service over wireless, cable, and DSL technologies.

One impressed analyst, Yankee Group's David Hawley, wrote, "the acquisition gives the combined company a claim to the industry's best-in-class pre- and post-activation functionality."

The combined company's product, Motive xi, is designed to bring together a variety of systems, such as provisioning and CRM, to enable service providers to track and serve customers better.

The first customer announced for Motive is Canadian telco TELUS.

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The Finances of Intersil

Wireless networking equipment manufacturer Intersil released preliminary results showing good prospects in the wireless networking area.

The company is exiting the automotive products business. It recorded declining revenue in the analog wireless business. The company acquired Elantec last year. Elantec supplies laser diode drivers for CD-RW and DVD-recordable drives. Intersil recorded $25.5 million in revenues from the Elantec product line during the final quarter of 2002.

The company also reported that although its wireless networking business decreased by 25 percent from the previous quarter, due to "customer-requested delayed shipments late in the fourth quarter," it still managed to record $56.2 million in sales during the quarter.

Demand for Intersil's wireless products seems to be picking up with a new generation of 802.11g-based chips which will go into products from D-Link, NETGEAR, corega, and USI. The company added that its dual band 802.11 a, b, and g solution, PRISM Duette, should further increase sales when in ships in volume during the first quarter of 2003.

Intersil will submit its quarterly SEC filing on or around February 13, 2003.

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USURF Rides the Waves

USURF America Inc. , has made significant moves. Until last year, the company's prime asset was dialup provider CyberHighway, with 8,500 customers. In its last quarterly report, filed on November 19, 2002 from Nevada, USURF noted that CyberHighway's customers had decreased to zero after a petition of involuntary bankruptcy was filed by ProPeople Staffing, CTC Telecom, Inc., and Hawkins-Smith.

The company noted, "some of CyberHighway's creditors believe that CyberHighway's as-yet unasserted damage claims against the original petitioning creditors and their law firm and a claim against Dialup USA, Inc. represent CyberHighway's most valuable assets."

USURF vowed to reinvent itself as a wireless company, using its Quick-Cell Wireless technology. The company issued stock to shorten the tenure of its top four executives in an agreement with Evergreen Capital, paid them in stock instead of cash, and replaced them with people from Evergreen Capital. The president became chairman of the board and forgave his loans to USURF.

In November, 2002, USURF issued 2 million shares of stock to acquire NeighborLync, Inc. of Colorado, and 200,000 shares to acquire MDU Cable Properties of Colorado.

During the first nine months of 2002, the company had issued about 17,620,000 shares of stock to cover 24 separate agreements for consulting and legal services and also to pay executive salaries. On January 22, 2003, the company replaced its auditor.

In January, the company announced agreements to provide wireless and cable services to buildings owned by MDU Cable Properties using NeighborLync equipment.

On January 16, 2003, USURF acquired DMJ Communications, a facilities-based CLEC, for cash and stock, allowing it to provide local and long distance calling, private cable television, and broadband Internet service.

The company's next SEC filing, its annual report, will be on or around March 15, 2003. It will show a company whose latest business plan includes delivering service as well as manufacturing equipment. It is a remarkable turnaround for a company whose last quarterly report concluded:

During the first six months of 2002, we made no capital expenditures and we currently have no capital with which to make any significant capital expenditures. Should we obtain significant funding, of which there is no assurance, we would be able to make major expenditures on Quick-Cell-related equipment. However, without additional capital, we will make no capital expenditures.

We look forward to seeing how the numbers look when the company puts all of its pieces together.

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Reprinted from IPS-Planet.

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