October 10, 2006 6:33:00 PM ET
WebSky, Inc. Announces Agreements to Acquire Two Argentine Companies, Owners of WiMAX Ready Radio Frequency in Argentina
BusinessWire
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WebSky, Inc. (Pink Sheets:WKYN) announced today that its Argentine subsidiary, WebSky Argentina S.A. ("WSA") has entered into agreements to acquire 95% of Infotel Argentina, S.A.,. a Buenos Aires based telecommunications company. WebSky further announced that WSA has also entered into a similar agreement to acquire 90% of another Buenos Aires-based telecommunications company, the latter company's identity being the subject of a non-disclosure agreement at this time. Both of these acquisitions will require the authorization of Argentine regulatory authorities. The two Argentine entities together are owners of radio frequency spectrum licenses, and other related licenses, issued by the Argentine government for 42MHz of bandwidth in the 2.5GHz spectrum. The licenses cover a radius of 112.5 miles from the center of the city of Buenos Aires, covering a population of over fifteen million people.
WebSky noted that these new agreements are the culmination of a series of previous agreements between the Company and the two companies and replaces a joint venture agreement that had previously been entered into with Infotel.
"WebSky is extremely pleased that WSA has entered into these agreements with these companies with their highly desirable 2.5GHz frequency for the world's eighth largest metropolitan area," commented Douglas Haffer, President and CEO of WebSky and WSA.. "We believe that the amount of spectrum to be acquired under these agreements will permit WSA to launch the most robust and efficient WiMAX system in the region," noted Eduardo Axtle, Vice President for Frequency Acquisitions. Haffer noted that while both 3.5 GHz and 2.5 GHz spectrum, among others, have been certified for WiMAX deployments globally, most analyses of these spectrum bands conclude that the lower 2.5 GHz frequency is significantly more efficient for the deployment of the newest and competitively attractive mobile WiMAX systems.
The area covered by frequency licenses covered by the agreements includes about forty percent of the population of the Argentina and a great majority of its business and governmental institutions, and of the country's personal and corporate wealth. Nearly 80% of the rapidly increasing numbers of broadband subscribers in the country are found within the "footprint" of these frequency licenses. With growth in broadband internet penetration in excess of 50% per year, advanced WiMAX systems are poised to secure a significant market share of this exploding subscriber base. The added advantage superior propagation qualities of the frequency spectrum covered by these agreements should provide WSA with a significant competitive edge.
The Company also announced today that it had sold all of its interests in its EBS frequency leases covering nine small and medium sized cities in the United States to an undisclosed party for an undisclosed price. The Company stated that the sale of those United States' assets was in furtherance of its long-standing priority to develop wireless broadband projects in emerging international markets.
Safe Harbor Statement under the Private Securities Litigation Reform Action of 1995: The statements contained in this release, which are not historical, are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Those risks and uncertainties include, but are not limited to, certain delays beyond the company's control with respect to market acceptance of new technologies and products, delays in testing and evaluation of products, and other risks associated with the industry in which the Company operates.
Contact Information: WebSky, Inc. Douglas Haffer or Eduardo Axtle, 415-296-5115
© 2006 BusinessWire
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