COM DEV International unveils details of new wireless Internet system, M/ERGY

COM DEV International Ltd has unveiled a new wireless Internet system that promises to deliver broadband connectivity to laptops and desktop computers without using external roof top antennas. The Cambridge ON company licensed technology from wireless communications product developer Qualcomm Inc that will be used in its next generation base stations and mobile terminals. Qualcomm also took an undisclosed equity stake in COM DEV as part of the licensing agreement. By implementing Qualcomm’s high data rate (HDR) technology into the new base stations and new mobile modem cards, company executives say the system, dubbed M/ERGY, will revolutionize the way business users and consumers access the Internet. The system will be marketed primarily to communications companies, wireless carriers and Internet service providers which will then sell service over the system to subscribers. M/ERGY’s packet-based architecture can deliver data speeds comparable to DSL or cable modems, but in a mobile environment. Josh Lober VP R&D at COM DEV says once the system is deployed across North America, uses can expect ubiquitous continent-wide access to the Internet either through a stationary or mobile device. The first versions of the M/ERGY system will operate in the 1.9 GHz PCS bands. Future generations will operate in a wide range of licensed and unlicensed bands from 1.9 GHz to 5.8 GHz. Lober says one of the major advantages of the M/ERGY system is that it doesn’t need roof top antennas, unlike point-to-multipoint LMCS/LMDS systems operating in the higher bands. Prototypes will be available in 2000Q4 and trial versions will be ready for testing at the end of 2001Q1. Initial versions of the M/ERGY mobile terminal will be similar in size to current PDAs and will connect to the desktop or laptop computer using either a USB or Ethernet port. The terminal will cost about the same as current high-speed wired modems. While the mobile terminal business is new for the wireless infrastructure equipment manufacturer, COM DEV executives say the company’s primary thrust will remain with base stations. President and CEO Keith Ainsworth said during a recent conference call that it’s likely it will license the mobile terminal methodology to a consumer device manufacturer. "It’s not really a market space we see ourselves being in as a very, very high volume product supplier," Ainsworth says. "That requires expertise, resources and competencies that we don’t see ourselves developing." Analysts suggest that likely candidates to license the consumer technology would be Nokia, Ericsson or other mobile device manufacturers. New wireless Internet market has enormous potential Recent estimates peg the value of the market at around US$40 billion in the United States and about US$300 billion globally over the next five years. The company expects a wide range of companies will be interested in buying the systems.Roger Boivin, president at COM DEV’s Wireless Group, says a major selling feature will be the system’s ability to deliver a high-speed Internet service without the wires, but at prices comparable to wired systems. The company recently secured $31 million in financing from a syndicate of underwriters led by Sprott Securities Inc. Proceeds from the sale of the special warrants will be used to continue development of the M/ERGY system. The deal is expected to be finalized by the middle of next week.

COM DEV International unveils details of new wireless Internet system, M/ERGY

News | October 2, 2000

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