More untethered web access on the way: MCI and Vulcan Ventures new investment in Metricom.
Quoting from today's WSJ:
Mr. Allen, the billionaire co-founder of Microsoft Corp., already had a 49% stake in the
Los Gatos, Calif., company, whose Ricochet service allows mobile customers to receive
Internet data at speeds comparable to a typical land-based dial-up service in several
major cities and also in airports. As part of the new agreement, Mr. Allen's privately held
investment company, Vulcan Ventures Inc., will buy 30 million new shares at $10 each,
which will maintain his current stake in Metricom once the new stock is converted to
common stock. MCI WorldCom, Clinton, Miss., will make an equal investment, giving the
long-distance company a 38% stake...
The new funding will allow Metricom to roll out a national and much-delayed faster
service, which now is expected to be available by mid-2000. Like the current system, it
will allow users to access the Web or receive electronic mail using small radio modems
attached to laptop computers or other devices, which transmit to and from receivers on
telephone and utility poles.
MCI WorldCom's involvement grows out of a recent push to formulate a wireless
strategy, including an agreement last month to purchase SkyTel Communications Inc.,
the Jackson, Miss., paging company for $1.8 billion. The goal is to offer customers
interactive services while bypassing local telephone companies.
As part of the transaction, MCI WorldCom also signed a five-year, nonexclusive
agreement to pay Metricom $350 million to distribute its Ricochet services. In addition,
Metricom will pay an undisclosed fee to use MCI WorldCom's data and Internet network
and support operations for the new service.
Mike, I know the speed wont impress you. But the price may. <G> |
