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IBM, AT&T, Intel unite in US broadband deal
Thursday December 5, 1:25 pm ET
By Jonathan Moules in New York
Some of the world's largest companies in computing and telecommunications on Thursday launched a joint bid to bring high-speed internet access to most of the US population over wireless networks.
Cometa Networks, which will be run from New York and San Francisco, has been formed by IBM, AT&T and Intel with the support of venture capital groups Apax Partners and 3i.

The company will sell wireless internet access, using the 802.11 technology standard, known as Wi-Fi, to telecoms carriers, internet service providers, cable operators and wireless carriers. It will also target retail chains, hotels, universities and property businesses to create "hot spots", where people can come to surf the web at high speeds using wireless connections from their laptops and handheld devices.

Cometa, which is in talks with customers and potential additional partners, plans to roll out its service during 2003 in the 50 largest urban markets in the US. Its goal is to ensure internet users are never more than 5 miles away from broadband internet access.

The service will enable internet users to accelerate the speed they surf without changing their e-mail addresses and passwords and without having to connect cables to a phone socket.

Broadband penetration is at about 16 per cent in the US, with most users accessing the service through cable modems or digital subscriber lines provided through their phone lines.

Wi-Fi has been trumpted as the next big thing by Silicon Valley companies, which have been hit by a reluctance among businesses to spend on technology.

The ability to share broadband internet connections across Wi-Fi networks has encouraged individuals, businesses and local governments to install wireless networks in communal spaces, such as shared houses and public parks.

"Cometa Networks plans to achieve critical economies of scale by building on the retail brands and customer reach of service providers," said Theodore Schnell, the new company's chairman and general partner of Apax.

Financial details about the new business were not disclosed.