Nextwave Wireless

NextWave abandons host of businesses to keep operating

Lynnette Luna — Sun, 09 Nov 2008 14:51:29 -0500

NextWave Wireless continued to struggle in the third quarter, announcing it has discontinued its networks business, which includes Go Networks, IPWireless and Cygnus subsidiaries, as well as its global services and NextWave Network product support strategic business units.

"NextWave believes the completion of the asset divestiture and cost reductions actions contemplated by its Operating Budget, its current cash, cash equivalents and marketable securities, projected revenues from its Multimedia segment, and the proceeds from the issuance of the Second Lien Notes will allow the Company to meet its estimated working capital requirements at least through September 2009," the company said in a release.

NextWave has had its hands in a number of businesses including WiMAX chips and broadband wireless equipment and has struggled with the downturn in the economy. The company reported a loss from operations of $23.6 million for the third quarter, a decrease of $17.9 million or 43 percent over the third quarter of 2007. The loss could have been worse but was offset by increased royalties from its multimedia segment, mainly its PacketVideo business, and a $19.3 million gain on the sale of wireless spectrum in September, which was offset with a $6.1-million asset impairment and restructuring charge.

The company said it intends to divest its network infrastructure business, pursue the sale of other businesses and pursue other cost reductions so it can meet its estimated working capital requirements at least through September 2009. NextWave, which wants to play big in the WiMAX chip market, said it has sought the services of Canaccord Adams to explore strategic transactions to preserve the value of its semiconductor business and eliminate the need for the company to make on-going capital investments in or incur liabilities relating to the business past the end of the first fiscal quarter of 2009.

For more:
- read this release

Related articles:
NextWave's cash is running out
NextWave offloads AWS spectrum

NextWave's cash is running out

Lynnette Luna — Sun, 10 Aug 2008 18:28:11 -0400

NextWave Wireless said its cash is running out, sending the company's shares down to a 52-week low on Friday. The company, which saw its shares fall as low as 89 cents per share on Friday, said it had $71.1 million in cash, cash equivalents, marketable securities, and restricted cash at the end of the second quarter, and unless it raises more money, the company will run out of cash at the beginning of October.

According to Chairman and Chief Executive Allen Salmasi, NextWave is negotiating for financing that will give the company enough money to operate through June 2009. The financing could include a $100 million private placement of junior preferred stock as well as up to $100 million in debt financing.

NextWave, which has its hands in a number of businesses including WiMAX chips and broadband wireless equipment, says its troubles come from worldwide economic conditions, which has resulted in a decline in bookings and sales of its network equipment. In addition, its plans to sell its U.S. spectrum holdings have been delayed by market conditions and regulatory issues, the company said. In July, NextWave reached a deal to sell AWS spectrum for $150.1 million to T-Mobile, Atlantic Wireless, Alaska Wireless and MetroPCS. The proceeds are supposed to go into a restricted cash account and to redeem debt.

NextWave reported second-quarter revenues of $31.8 million, a $5.8-million or 22-percent increase over the first quarter 2008. NextWave said the increase was driven by increased sales of NextWave's wireless broadband network equipment and subscriber devices and by the continued growth in mobile device software revenues generated by its PacketVideo subsidiary. The company reported a loss of $65.7 million for the second quarter, a decrease of $13.9 million or 17 percent from the first quarter.

"We are feeling the effects of a slowing global economy on our business. This has resulted in lower than anticipated sales of our 3GPP and WiFi based network products and a delay in WiMAX network deployments that will continue to impact projected sales of our WiMAX semiconductor products," Salmasi said in a press release.

For more:
- read AP
- see this release

Related stories:
NextWave offloads AWS spectrum. NextWave story
NextWave pushes mobile WiMAX handset reference design. WiMAX story

NextWave teams with Taiwan carrier for WiMAX TV

Thu, 05 Jun 2008 06:59:55 -0400

Taiwanese WiMAX operator Global Mobile Corp. and NextWave Wireless announced a joint technology agreement to make end-to-end mobile WiMAX solutions.

The two plan to set up a WiMAX field trial and demonstration network to leverage the solutions, which will include mobile TV powered by NextWave's MXtv technology. The trial network will be deployed in Taipei. As part of the field trial, Global Mobile will deploy an end-to-end system of NextWave's new V5 base transceiver station and ASN gateway platform.

NextWave introduced MXtv in March. The company says the technology will enable operators to deliver a range of multimedia services, including mobile TV, interactive media and digital audio without having to invest in new spectrum or extra radio access network equipment. MXtv is a similar proposition to NextWave's UMTS MBMS-based TDtv.

For more:
- check out this release

Related stories:
NextWave introduces mobile TV platform for WiMAX. NextWave WiMAX TV story
NextWave signs on Alcatel-Lucent for WiMAX TV. NextWave MXtv story

Nortel goes its own way with LTE IPR licensing

Thu, 08 May 2008 06:59:56 -0400

Nortel has thrown a wrench into the LTE framework licensing agreement announced last month by seven wireless vendors. The vendor, known to hold some substantial IPR for OFDMA, has snubbed its nose at last month's framework agreement, instead going it alone on LTE IPR fees and announcing what is says is a competitive handset royalty rate of about 1 percent of the handset sales price for its portfolio of LTE essential patents.

The fee structure agreed to by Alcatel-Lucent, Ericsson, NEC, NextWave Wireless, Nokia, Nokia Siemens Networks and Sony Ericsson calls for royalties for LTE that total less than 10 percent of the resale price for handsets and less than $10 for laptops. However, it is up to the companies involved to decide how this (up to) 10 percent is split between them. Nortel's plan would guarantee the vendor makes money.

Qualcomm and Motorola, to other big patent holders, are likely to stay out of the seven-vendor initiative and come out with their own LTE license schemes. How much visibility will that give in terms of industry IPR fees?

For more on Nortel's LTE play:
- read this Nortel LTE royalty press release

Related article:
Key vendors absent from new LTE licensing scheme

Key vendors absent from new LTE licensing scheme

Thu, 17 Apr 2008 06:59:57 -0400

Six vendors announced they have committed to a framework designed to offer predictable and more transparent IP licensing. Alcatel-Lucent, Ericsson, NEC, NextWave Wireless, Nokia, Nokia Siemens Networks and Sony Ericsson have specifically agreed to royalties for LTE that total less than 10 percent of the resale price for handsets and less than $10 for laptops. However, it is up to the companies involved to decide how this (up to) 10 percent is split between them.

"The adoption of this initiative will reassure operators of the early widespread adoption of LTE technology throughout the consumer electronics industry," Ericsson's SVP, GM and CTO Håkan Eriksson said in a statement.

Notably absent from the agreement are Qualcomm, Motorola and Nortel. Without those major players, will such an agreement work out?

For more on the LTE licensing agreement:
- read this press release from the companies

Related articles:
- Vodafone CEO: WiMAX has a home in LTE. Story on Vodafone
- China Mobile joins Vodafone, Verizon in LTE trial. Story on LTE trials

NextWave signs on Alcatel-Lucent for WiMAX TV

Thu, 13 Mar 2008 07:59:56 -0400

Following its introduction on Monday of MXtv, a mobile multicast and broadcast technology for WiMAX operators, NextWave announced Alcatel-Lucent will integrate the technology into its mobile WiMAX solutions. The two companies plan to perform a series of interoperability tests with Alcatel-Lucent's commercial WiMAX infrastructure starting in the second quarter of 2008.

Earlier this week NextWave announced a similar deal with Chinese vendor Huawei that calls for the manufacturer to deliver the integrated MXtv technology into its WiMAX solutions.

MXtv technology will enable operators to deliver a range of multimedia services, including mobile TV, interactive media and digital audio without having to invest in new spectrum or extra radio access network equipment, NextWave said.

MXtv is a similar proposition to NextWave's UMTS MBMS-based TDtv. The company has gained traction of late for that technology, signing on Orange and T-Mobile to a six-month pilot in the London area. The technology proposes to reduce mobile broadcast costs by means of shared, unpaired 3G spectrum and a standards-based TDtv network. NextWave has this capability from its acquisition of IP Wireless last year.

For more about NextWave's deal with Alcatel-Lucent:
- read this release

Related articles:
NextWave introduces mobile TV platform for WiMAX Report
Orange, T-Mobile UK partner for TDtv trial Report

NextWave introduces mobile TV platform for WiMAX

Mon, 10 Mar 2008 07:59:57 -0400

NextWave Wireless introduced MXtv, a mobile multicast and broadcast technology for WiMAX operators. The technology will enable operators to deliver a range of multimedia services, including mobile TV, interactive media and digital audio without having to invest in new spectrum or extra radio access network equipment, NextWave said.

Supporting 30 fps QVGA and WQVGA content, MXtv technology provides up to 45 high-quality mobile TV channels in 10 MHz with rapid channel switching times of under two seconds, and offers network operators the ability to dynamically allocate spectrum based on content availability, time-of-day requirements, user demand, and the availability of 'must see' live events such as sports, concerts, interactive reality shows or emergency broadcasts, NextWave said.

"This gives WiMAX networks a solution that not only delivers mobile TV, but a whole range of multimedia services and targeted advertising," Jon Hambidge, chief marketing officer with NextWave's network product division, told FierceBroadbandWireless. "Most WiMAX operators are approaching the market with an access business case, competing with DSL and cable operators ... But WiMAX operators can add a layer of revenue to that business case by adding a multimedia component."

Separately, NextWave announced a joint development agreement with Chinese vendor Huawei Technologies that calls for the vendor to deliver the integrated MXtv technology into its WiMAX solutions.

For more about NextWave's MXtv:
- check out this release

Related articles:
Orange, T-Mobile UK partner for TDtv trial Report
NextWave buys IPWireless for up to$235M Report

NextWave pushes mobile WiMAX handset reference design

Thu, 14 Feb 2008 06:59:54 -0500

When it comes to WiMAX devices, most of the emphasis has been on data devices, not handsets. NextWave Wireless is breaking that mold. At the Mobile World Congress the company is showcasing its mobile WiMAX handset reference design that it announced last week. The company is collaborating with Finish firm Elektrobit on a reference design based upon NextWave's WiMAX chipset. Together, the two firms hope that this design will help bring WiMAX handset reference designs to market quicker.

Craig Miller, vice president of marketing at NextWave Mobile Products Semiconductor Unit, said that the company believes a lack of a handset design for WiMAX may prevent operators from transitioning to the technology. "This will help remove that barrier," Miller said.

NextWave is also working with operators Orange and T-Mobile UK on a mobile TV pilot for consumers in London via NextWave's MBMS-based TDtv solution. The six-month pilot, scheduled to commence in the second half of this year, proposes to reduce mobile broadcast costs by means of shared, unpaired 3G spectrum and a standards-based TDtv network--according to NextWave, the consortium model is designed for easy replication in more than 50 additional markets where unpaired 3G spectrum is available. -Sue Marek from Barcelona

For more about NextWave's WiMAX moves:
- see this press release

Related articles:
NextWave, Huawei trial mobile WiMAX Report
NextWave shipping NW1000 Series WiMAX chipset Report

SPOTLIGHT: EB and NextWave complete WiMAX reference design

Thu, 07 Feb 2008 06:59:52 -0500

EB and NextWave Wireless have developed a complete reference design based on NextWave's first-generation WiMAX chipset. Release

NextWave re-organizes business

Mon, 07 Jan 2008 06:59:53 -0500

NextWave Wireless has re-organized its business, folding its plethora of acquisitions into two business units, one focused on mobile infrastructure and the other on devices.

NextWave will combine its PacketVideo business, which makes software for multimedia phones, with its semiconductor business, which is primarily focused on producing WiMAX chips. The infrastructure division will include TD-CDMA vendor IPWireless and WiFi vendor Go Networks.

NextWave has a mission of making spectrum available to companies that want to enter the mobile broadband space and use its products and technologies, including WiMAX and TD-CDMA.

To read more about NextWave's re-organization:
- take a look at this article from Telephony Magazine

Related articles:
NextWave, Huawei trial mobile WiMax Report
NextWave bolts Japan after one month Report

NextWave acquires WebSky Argentina

Mon, 10 Dec 2007 06:59:55 -0500

NextWave Wireless has purchased WebSky Argentina, an owner of 42 megahertz of spectrum in the 2.5 GHz band covering the Buenos Aires metro region. The purchase is part of NextWave's strategy to own spectrum and build WiMAX or TD-CDMA infrastructure for other companies. Earlier this year, NextWave acquired IPWireless, the maker of TD-CDMA, for $99.6 million and purchased a 65 percent controlling stake in WiMAX Telecom AG through its Inquam Broadband GmbH subsidiary. It also announced the fabrication of its first-generation WiMAX chipset.

To find out more about NextWave's acquisition of WebSky:
- Check out this article from wimaxday

NextWave leaves Japan after a month

Mon, 24 Sep 2007 06:59:55 -0400

Just a month after NextWave Wireless bought 69.23 percent of IP Mobile in Japan, the company is selling the stake back to Mori Trust, the group it purchased the stake from initially. NextWave decided its chances of making a profit in the highly competitive Japanese market were slim.

NextWave bought the stake to further the deployment of TD-CDMA since it has an interest in developing the technology after acquiring TD-CDMA technology developer IPWireless in April. IP Mobile secured spectrum in the 2 GHz band for mobile services in November 2005 along with Softbank and Emobile. Both of those companies have launched service, but IPMobile has struggled to find financing to deploy TD-CDMA technology.

But NextWave itself is burning through some serious cash as it embarks on its wireless 2.0 vision. The company lost more than $59.5 million during the second quarter, primarily attributed to its increase in operating expenses related to the expansion of its R&D teams and related support organizations.

For more about NextWave's exit from Japan:
- read this article from AFP
- and this report from the Japan Times

NextWave spending heavily

Thu, 16 Aug 2007 06:59:58 -0400

NextWave Wireless is burning through some serious cash as it embarks on its Wireless 2.0 vision. The company lost more than $59.5 million during the second quarter, primarily attributed to its increase in operating expenses related to the expansion of its R&D teams and related support organizations. In the first six months of the year, NextWave lost more than $114.7 million, a significant increase from the $38.1 million it lost in the first six months of 2006.

NextWave's stock fell 7.86 percent to close at $6.21 yesterday.

The company had a busy quarter as it works to fulfill its stated mission of making spectrum available to companies that want to enter the mobile broadband space and use its products and technologies, including WiMAX and TD-CDMA. It acquired IPWireless, the maker of TD-CDMA, for $99.6 million and purchased a 65-percent controlling stake in WiMAX Telecom AG through its Inquam Broadband GmbH subsidiary.

It also announced the fabrication of its first-generation WiMAX chipset. NextWave wants to become a powerful contender in the WiMAX chip market, and plans to increase its workforce in the chipset division from about 250 today to some 350 people next year.

This quarter, NextWave acquired a 69.23 percent stake in Japan's IPMobile from Mori Trust and is rushing to deploy TD-CDMA equipment before the operator's network license expires in November.

Indeed, NextWave has quite an impressive collection of assets: a rather large swathe of spectrum the 2.3 GHz, 2.5 GHz and Advanced Wireless System bands (1710-1755 MHz and 2110-2155 MHz), beamforming intellectual property from its acquisition of WiFi vendor Go Networks and mobile video from its ownership of PacketVideo, to name a few. Then it is spending heavily in both WiMAX and TD-CDMA, both of which haven't reached any significant economies of scale.

In short, the company's strategy is still perplexing because of all of the seemingly disparate assets and no announced customers. Given that, it's difficult for investors to stomach the heavy spending that will likely continue throughout the year. --Lynnette

NextWave buys into Japanese carrier for TD-CDMA

Mon, 16 Jul 2007 06:59:57 -0400

Following its acquisition of TD-CDMA technology developer IPWireless in April, NextWave Wireless is now moving with TD-CDMA in Japan. The company announced plans to purchase a 69.23-percent stake in Tokyo-based IPMobile from Mori Trust, which bought the stake in April, and to speed up the operator's deployment of TD-CDMA.

IPMobile secured spectrum in the 2 GHz band for mobile services in November 2005 along with Softbank and Emobile. Both of those companies have launched service, but IPMobile has struggled to find financing to deploy TD-CDMA technology. Now IPMobile must launch service by October or risk losing its license. NextWave says it will work to meet that deadline.

The acquisition will make NextWave the only foreign carrier in Japan since Vodafone pulled out of Vodafone KK last year and sold to Softbank Mobile. But as NextWave has stated in the past, it doesn't have the intention of being a mobile operator. "After the launch of IPMobile's commercial network later this year, we look forward to following up with world-class companies in Japan to invest in the future of IPMobile's business," said NextWave Chairman and CEO Allen Salmasi.

For more about NextWave's plans in Japan:
- read this article from TelecomWeb
- check out this release

Related articles:
- NextWave spells out plans for WiMAX chips