Redline to raise £40m for WiMAX network investment

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Network equipment specialist Redline Communications is expected to raise £40m to fund investment in next-generation WiMAX wireless networks and technology, when it floats on the London's Alternate Investment Market next month.

The money will be used to invest in several territories, including the UK, where existing fixed-line broadband services are less developed, are restricted by poor infrastructure or where geographic limitations are restricting the deployment of fixed-line services.

The Canadian-based company, founded in 1999, currently has around 30,000 wireless broadband systems deployed by operators in over 80 countries. It was the first to market an 802.16 compliant product and was amongst the first companies to receive WiMAX Forum certification for its RedMAX WiMAX system.

Redline is one of several companies, including the British ISP Pipex, looking at WiMAX wireless technology as a lower-cost option for deploying broadband services to businesses and consumers in place of existing wired DSL and cable broadband networks. WiMAX is also being considered as a means to provide broadband to remote parts of the UK not currently served by DSL-enabled exchanges, or where DSL-enabling is not cost-effective..

The floatation will value the business at around £140 million. Private equity backers including GF Private Equity, Matrix Partners, US Venture Partners and Telemedia have invested around $43m in the business since it launched.

Redline is one of several North American technology companies and start-ups that have opted to float on the London market instead of New York.

WiMAX network trials began last month in Milton Keynes, run by Pipex and Intel, while Manchester Metronet are operating a wireless high-speed network in Manchester, and PCCW-owned Now are operating networks in London and the South East using alternative technologies.

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