Capital Injection for 3G Player ip.access

Europe UK : ip.access ltd announced the conclusion of an £8.5 million financing round led by Scottish Equity Partners, including Intel Capital Corporation and Rothschild & Cie Gestion. The investment will be used to finance the expansion of ip.access' current successful second-generation pico basestation business and to develop cost-effective third-generation access points for use in homes and small businesses to support fixed-mobile convergence.

ip.access was founded in 1999 as a spin-out from TTPCom to provide mobile network operators with solutions to improve in-building cellular coverage and capacity. A recent global survey showed 70% of users experience coverage problems at work, and 34% have changed operators as a result of poor coverage. Cellular capacity in buildings is becoming even more important as networks migrate to 3G and as call minutes move from fixed to mobile.

ip.access produces the world's smallest GSM basestations which are designed to be deployed inside buildings and communicate with operators' infrastructure using ubiquitous broadband IP links. The company has enjoyed increasing success and its nanoGSM™ equipment is used by many operators including T-Mobile USA, Telfort (Netherlands), Spring Mobil (Sweden), Smart (Philippines), and Eurotel (Czech Republic). In 2004, the Company signed a global OEM agreement with Siemens Mobile under which Siemens distributes nanoGSM as part of its enterprise portfolio.

“There is a significant global opportunity for both enterprise and residential in-building wireless solutions,” commented Andrew Davison, Director, Information Technology, Scottish Equity Partners. “With its nanoGSM product, ip.access has demonstrated the ability to turn a technological advantage into a commercial success in the shape of the world’s smallest GSM basestation.”

Abdul Guefor, Investment Director, Intel Capital, stated, “Products that can provide low-cost 3G access in the home using broadband IP connections are both imaginative and innovative; and we believe address a significant untapped need amongst mobile operators.”

Jean-Michel Beghin –Private Equity, Rothschild, added, “The product portfolio that ip.access currently offers, and the technology it has in development, is strategically important to mobile network operators. ip.access’ proposition enables MNOs to fully leverage their most valuable asset – licensed spectrum - to compete effectively with vendors offering unlicensed WiFi devices and solutions.”

Tony Milbourn, TTP Communications Managing Director and ip.access Chairman, said, “Demand for fixed-mobile convergence is growing. ip.access’ vision, tenacity and technical and commercial expertise has brought the Company to an impressive position in delivering commercial in-building wireless solutions based on low-cost cellular technology. Now, with this additional funding, we are in a strong position to do the same for residential markets.”

Stephen Mallinson, ip.access’ CEO, added: "We are delighted to welcome SEP, Intel Capital and Rothschild as investors. Their investment will enable us to accelerate the development of our 3G Access Point, with which operators will be able to cover homes and small businesses and provide converged fixed-mobile services at prices competitive with fixed-line services. It will also help us expand our GSM market, addressing new opportunities, such as those presented by the forthcoming auction of 1800MHz spectrum in the UK."

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