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Technology Stocks : Ericsson overlook? -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (4518)	2/9/2001 1:17:11 PM
From: Jim Oravetz	Read Replies (1) \| Respond to of 5390

WSJE: Intel And Ericsson Join Investors In UK Start-Up By DAVID PRINGLE Staff Reporter LONDON -- Intel Corp. and Telefon AB L.M. Ericsson have invested in a U.K. start-up that has developed technology to allow mobile-phone operators to track the location of their subscribers. Cambridge Positioning Systems Ltd. said the U.S. chip maker and the Swedish mobile-phone company have joined existing investors, such as venture capitalists 3i Group PLC and Argo Global Capital Inc., in contributing to a third funding round that raised $32 million (34.4 million euros). The exact amounts invested by Intel and Ericsson weren't disclosed. Chris Wade, Cambridge Positioning System's chief executive officer, said the latest round values the company at more than $100 million, which is double its value at the last round of funding in May 2000. The participation of Intel and Ericsson highlights the mobile phone industry's growing interest in offering subscribers services tailored to their location, such as details of local restaurants or transport. Cash-strapped operators hope that subscribers will be prepared to pay a premium for such services. Once installed in an operator's network and handsets, Cambridge Positioning System's software allows a subscriber's location to be tracked to within 50 meters. The Cambridge-based company is in competition with firms that have developed satellite technology that can accomplish the same task. But Ericsson and other mobile-phone equipment suppliers, such as Siemens AG and Nortel Networks Corp., have already agreed to integrate Cambridge Positioning System's technology into their network systems. James Borup, a spokesman for Ericsson, said of his company's investment in Cambridge Positioning System: "This is a very interesting field with a lot of new exciting applications, from (finding) the closest Chinese restaurant to fleet-vehicle management." Mr. Wade hopes the U.S. mobile-phone operators VoiceStream Wireless Corp. and AT&T Corp. will deploy Cambridge Positioning System's technology in the third quarter of this year. Both operators have told the U.S. Federal Communications Commission that they plan to install location-tracking technology on their networks during 2001. If Cambridge Positioning System wins those contracts, it is likely to issue shares to the public during 2002, Mr. Wade said.