Monet Mobile Networks Announces $32 Million Financing from Leading Technology Funds and Second Market Deployment
SEATTLE--(BUSINESS WIRE)--March 11, 2002--
Mayfield, Soros Private Equity, Hook Partners, LG Electronics and Qualcomm Back Wireless Internet Provider as it Launches Second CDMA2000 1X Network
Monet Mobile Networks, a Seattle-based company that provides fast, mobile access to the complete Internet, today announced it closed $32 million in financing and rolled out its second CDMA2000 1X market in Fargo, N.D.
The announcement comes on the heels of commercial availability of Monet's wireless Internet service in Sioux Falls, S.D., where the company deployed the first data-only CDMA2000 1X network in the United States last October.
"Our focus is really paying off," said George M. Tronsrue, III, Monet CEO. "We've proven ourselves to our investors, who have supported our vision from its infancy; and to a growing base of customers, who are beginning to see how our technology has changed the way they live, work and play."
Testament to investor confidence in Monet is that most of the company's largest backers including Mayfield, Soros Private Equity, and Hook Partners have stepped up to the plate again. LG Electronics, who supplied Monet with its CDMA2000 1X infrastructure equipment, and QUALCOMM have invested as well.
"This team has exceeded our expectations," said Kevin Fong, a managing partner of Silicon Valley VC Mayfield, who provided the company's seed funding and has maintained its stake in the company in every round.
"When we first came on board, this was a straight wireless Internet play. Monet has since emerged as the nation's first example of a 3G-migration technology. They've built a solid business in a short period of time and have delivered a dynamic product to their customers. We're very pleased with our investment in this team."
Monet launched its first data-only CDMA2000 1X network in October, providing users with data transmission speeds up to twice the speed of dial-up service, with average speeds of about 75 Kbps. The company is on track to deploy a CDMA2000 1xEV-DO network later this year that will support peak access speeds of 2.4 Mbps, providing users with unsurpassed third-generation (3G) capabilities.
"We have been following Monet's CDMA2000 1X deployments with both excitement and anticipation," said Jeff Jacobs, president of global development at QUALCOMM. "Monet's launch of CDMA2000 1X data-centric networks will provide its customers with a new level of high-speed data service that has been previously unavailable to wireless users in the Midwest. Additionally, we look forward to their implementation of 1xEV-DO networks, which will further increase the data speeds, allowing advanced wireless broadband data applications to be launched."
LG Electronics, one of the world's leading providers of CDMA infrastructure equipment, provided equity and equipment financing to the company. LG's technology is being used in Monet's current markets, and will be deployed in additional markets in North Dakota, South Dakota and Minnesota.
"When we saw how Monet was using CDMA2000 1X and their plans for 1xEV-DO, we instantly wanted to be involved beyond our role as an equipment vendor," said Ghung Gun Park, president and chief executive officer of Information and communications system company of LG Electronics. "As the market leader of CDMA 2000 in Korea, we've seen the impact this technology has made in Asia. We expect Monet will catapult its adoption in the U.S."
Monet plans to launch additional markets in the upper Midwest throughout this year, and is focused on market deployments and growth of its subscriber base. The company will remain focused on delivering a data-centric wireless Internet service to small markets underserved by other broadband services, particularly DSL and cable.
"I'm highly encouraged as we enter 2002," said Tronsrue. "To close a round of this magnitude, particularly in this market environment, and to sign up real customers, is a tremendous achievement. I'm incredibly proud of what we have accomplished and how we have positioned ourselves for the future."
About Monet Mobile Networks Inc.: Headquartered in Seattle, Monet Mobile Networks Inc. (formerly Burst Wireless Inc.) was founded by telecommunications industry veterans in mid-1999. Monet is a wireless Internet service provider, offering users fast, mobile access to the complete Internet, email, corporate intranet applications, data and customer support. The Monet service can be purchased online at www.monetmobile.com, at Wireless Retail, Inc., Blockbuster Video, Best Buy stores and other authorized dealers in Sioux Falls, S.D., Fargo, N.D. and Moorhead, MN for $49.95 per month. The company's investors include Mayfield, Soros Private Equity Partners, Qualcomm, Intel Capital and Hook Partners. For more information, please visit www.monetmobile.com.
About Mayfield: Mayfield provides Venture Capital with Impact and creates next-generation technology companies in communications and enterprise software. Since Mayfield's founding in 1969, the firm has invested in more than 425 companies and has taken approximately 115 companies public. Today, these Mayfield-backed companies represent an aggregate market value of more than $150 billion. Examples of Mayfield's legacy impact companies include: Advent Software; Avanex; Citrix Systems; Nuance Communications; Redback Networks; Tibco and webMethods.
About QUALCOMM: QUALCOMM Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's Code Division Multiple Access (CDMA) digital technology. QUALCOMM has licensed its essential CDMA patent portfolio to more than 100 telecommunications equipment manufacturers worldwide. Headquartered in San Diego, Calif., QUALCOMM is included in the S&P 500 Index and is a 2001 FORTUNE 500(R) company traded on The NASDAQ Stock Market(R) under the ticker symbol QCOM.
About LG Electronics, Inc.: LG Electronics Inc. with its headquarters in Seoul/South Korea was founded in 1958 as "GoldStar". Since 1995, the name has been changed to LG Electronics. A network of 72 subsidiaries spans over 37 countries worldwide. LG Electronics employs over 64,000 people worldwide. Products are sold in more than 150 countries. LG Electronics is one of the leading manufacturers of display device, digital appliance, multi-media products, mobile handset and infrastructure. LG Electronics succeeded in developing the world's first digital cellular system adopting CDMA (Code Division Multiple Access) technology. With this system, commercial CDMA cellular service was launched in Korea in January 1996. LG Electronics is also one of the biggest handset suppliers to major operators such as Verizon and Sprint PCS. For more information, please visit www.lge.com.
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