June 20, 2001 03:07
Wireless Visionaries Join Forces: Craig McCaw, Ignition and
Nextel Communications Fund RadioFrame Networks Inc.
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REDMOND, Wash.--(BUSINESS WIRE)--June 20, 2001--
Industry heavyweights ring up $11 million for the wireless
infrastructure start-up
RadioFrame Networks(TM) Inc., a provider of indoor voice and data systems that improve
clarity, coverage and connectivity, today announced first and second round funding from
high-profile investors, including Craig McCaw's COM Investments, Ignition, Nextel
Communications (Nasdaq:NXTL), Nicolas Kauser and Orange Ventures, the venture
capital arm of European wireless carrier Orange (LSE:OGE).
COM Investments, the personal investment company of Craig McCaw, wireless pioneer and
founder of McCaw Cellular Communications (now AT&T Wireless), led RadioFrame Networks'
first round of financing. Nicolas Kauser, former CTO at AT&T Wireless; and Nextel, joined
McCaw to complete the round at $4 million.
Second-round financing was co-led by Ignition, an information and communication technology
venture capital firm started by former Microsoft and McCaw Cellular senior executives who
helped revolutionize the Internet, personal computing and wireless technologies, and Nextel.
Orange Ventures joined Ignition and Nextel to complete round two financing at $7 million.
As wireless phones are increasingly being used indoors, in-building coverage and capacity
has increased in importance. Engineered exclusively for indoor use, the RadioFrame System
can accommodate all legacy wireless voice and data standards as well as future
technologies. Essentially a mini cell site, each RadioFrame is roughly the size of an exit sign
and uses an innovative software-defined radio system that alleviates the load on the outdoor
wireless networks. The RadioFrame System enables increased reliability and clarity of calls
placed indoors, enhanced services, extended battery life in buildings equipped with
RadioFrame Networks' technology and fewer dropped calls.
One of RadioFrame Networks' first supporters was Craig McCaw, a leader in the wireless and
telecommunications industries. McCaw is perhaps best known for creating the first
nationwide cellular phone network and building McCaw Cellular Communications Inc., where
RadioFrame Networks founder Rob Mechaley began his career, from a cable company into
the country's largest provider of wireless communications services. In 1994, McCaw Cellular
was acquired by AT&T Corp. for $11.5 billion, one of the largest mergers in U.S. business
history at the time. Other McCaw ventures include Teledesic Corporation, XO (formerly
Nextlink Communications) and Nextel.
"In their previous work with us at McCaw Cellular, Rob and his group developed sound,
long-term solutions to carrier needs, and RadioFrame Networks is a testament to their
expertise," said Bob Ratliffe, spokesperson for McCaw. "Rob's background in building the
infrastructure of today's wireless networks, from co-inventing CDPD to architecting Project
Angel at McCaw and AT&T Wireless, has earned him our confidence."
"Wireless coverage is vastly underserved indoors," said Steve Hooper, a founding partner at
Ignition and former CEO for McCaw Cellular/AT&T Wireless, Nextlink and Teledesic.
"RadioFrame Networks is poised to capture the lion's share of a potential multi-billion dollar
market, because it has developed an innovative foundation that encompasses both voice and
data coverage into one platform. As we have already seen, carriers in both the U.S. and
Europe are eager to get the RadioFrame Networks solution online. Ignition has great
expectations for the company, and I'm thrilled to be working alongside Rob again."
RadioFrame Networks' technology uses an innovative software-defined radio system to
provide indoor wireless voice and wireless LAN services. The system is versatile and
future-proof, accommodating all legacy wireless voice and data standards as well as future
technologies.
"There's a tremendous need for efficient indoor coverage and RadioFrame Networks fills that
technology void by providing a comprehensive, economical and manageable solution for the
indoor space," said Tom Kelly, Nextel executive vice president and chief marketing officer.
"The indoor market has dramatically increased in importance, and RadioFrame Networks
offers the only solution that satisfies our large customer demand for enhanced coverage
indoors while removing traffic from the outdoor network."
Kauser formerly worked with Mechaley at AT&T Wireless. In his role as executive vice
president and chief technology officer at AT&T Wireless, Kauser led all aspects of
engineering and technology projects, network operations and long-range planning. Kauser
helped to build the Canadian nationwide cellular network in his work at Cantel. In 1998, he
was awarded the prestigious Gold Prize by the Carnegie Melon Institute and American
Management Systems for excellence in the application of information technology.
Since RadioFrame Networks' product announcement in March, carriers have been rapidly
endorsing the solution. The company has partnered with two carriers in the three months the
RadioFrame Networks System has been available. Nextel has signed a service agreement to
deploy the RadioFrame Networks System to their network. RadioFrame Networks is also
developing a GSM-based solution.
"RadioFrame Networks provides great benefits to the European market, solving issues related
to our dense population, tremendous wireless penetration and our increased need for
spectrum as Europe moves toward 3G technology," said Mati Szeszkowski, principal at
Orange Ventures. "This technology will revolutionize how carriers deliver services to their
customers, and we have no doubt that RadioFrame Networks will be wildly successful."
"Some of the best times of my life were spent working at McCaw Cellular, and it's great to be
working with these guys again," said Rob Mechaley, chairman and founder of RadioFrame
Networks. "This group of people created the cellular industry together, and now we are able
to realize the vision that we've all been individually working toward over the years. This is truly
an exciting time."
About RadioFrame Networks
Headquartered in Redmond, Wash., RadioFrame Networks, Inc. is an indoor wireless
infrastructure company that has developed the first system to converge both mobile wireless
voice/data and high-speed wireless LAN into one platform solution via software-defined radio
technologies. The RadioFrame solution increases the quality, connection speeds and
reliability of indoor wireless coverage at a fraction of the cost of current alternatives. For more
information, please visit the company's Web site at www.radioframenetworks.com.
About the RadioFrame System
Engineered exclusively for indoor use, the RadioFrame system can accommodate all legacy
wireless voice and data standards as well as future technologies. Essentially a mini cell site,
each RadioFrame is roughly the size of an exit sign and is powered by a single wire that
connects to a 19-inch chassis. The system can scale from 32,000 square feet to millions of
square feet of coverage and can be installed by a typical LAN installer. It can be engineered
to handle varying levels of capacity and the software can be customized. For users, the
system enables increased reliability and clarity of calls placed indoors, enhanced services
and extended battery life in buildings equipped with RadioFrame's technology.
About Ignition
Ignition, (www.ignitionpartners.com ), headquartered in Bellevue, Wash., is a premier venture
capital firm focused on the information and communications industries, and igniting winning
businesses in early stage software, telecommunications and network infrastructure
companies. Ignition brings together an unparalleled combination of operating and financial
experience. Ignition's partners are proven business leaders with over 160 years of combined
experience who have built some of the world's most successful businesses of the last two
decades, including Microsoft Windows, McCaw Cellular Communications, Nextlink (now XO
Communications), Microsoft's enterprise business and Microsoft's Internet turnaround.
About Nextel Communications
Nextel Communications Inc., based in Reston, Va., is the leading provider of fully integrated
wireless communications services and has built the largest guaranteed all-digital wireless
network in the United States covering thousands of communities across the United States.
Nextel and Nextel Partners, Inc., currently serve 184 of the top 217 U.S. markets.
Through recent market launches, Nextel and Nextel Partners' service is available today in
areas of the U.S. where approximately 217 million people live or work. The Nextel National
Network offers a fully integrated wireless communications tool with digital cellular, Text &
Numeric Messaging, wireless Internet access and Nextel Direct Connect(R) -- a digital
two-way radio feature. In addition, through Nextel International, Inc., Nextel has wireless
operations and investments in Canada, Mexico, Argentina, Brazil, the Philippines, Peru,
Chile and Japan. Please visit their website at nextel.com. |
