GlobeTel Wireless Gets Nod to Install Massive WiMax Network in Russia

TMCnet Associate Editor

GlobeTel Wireless, a subsidiary of GlobeTel Communications Corp., has reportedly entered into a binding agreement with LLC Internafta of Moscow, Russia, to install wireless networks in 30 cities throughout the Russian Federation, providing broadband, VoIP and DECt technologies.

Under the terms of the agreement, Internafta will make a series of payments to GlobeTel Wireless, totaling $600 million, for the installation of an array of proprietary networks in Russia’s 30 largest cities, starting with Moscow and St. Petersburg. GlobeTel plans to roll out the network in three stages, comprising 10 cities each, over the next 27 months. It will both manage the network and retain an ongoing 50 percent shareholding in its operations.

According to a news release, GlobeTel has held meetings with officials at various levels of the Russian Government - including senior members of the Russian Parliament (the “Duma”) and various branches of the Russian telecommunications and technology establishment - during the past six months. In October, GlobeTel demonstrated a working version of its HotZone 4010 equipment, which will form the backbone of the new network. Following the demonstration, GlobeTel entered into negotiations with a group of prominent Russian investors for the implementation of the network.

GlobeTel CEO Tim Huff called the agreement “exciting” and pointed out that the Russian Internet market “is severely limited by a lack of infrastructure and by the high cost to individual users … even in those relatively rare cases where it is available.”

“The GlobeTel Wireless network will provide city-wide high speed, wireless connectivity with the ability to provide voice-over IP telephony along with residential and business-based DECt service,” Huff said in the news release. “DECt technology, particularly in conjunction with low-cost VoIP service, is the key to delivering highly affordable wireless telephone and broadband access to areas with limited or high cost service.”

Uli Altvater, president of GlobeTel Wireless, said the construction of the network “will utilize the skills or more than 1,000 people in Russia, Europe and the United States.”

“This transaction will catapult GlobeTel to a position as one of the top two suppliers and operators of wireless networks in the world,” he said.

GlobeTel made news on Tuesday when it announced that it had received a “warning letter” from the American Stock Exchange stating that the company was not in compliance with AMEX rules regarding the listing of additional shares.

Specifically, GlobeTel had not filed an application to list additional shares with regard to certain share issuances the company made since its initial listing in May 2005. The company has subsequently submitted the application to the AMEX.

”According to the letter, the AMEX has determined not to apply at this time continued listing evaluation and follow-up procedures,” a news release on the company’s website states. The company has also amended its share issuance procedures to assure future compliance.

The news of the “warning letter” followed the resignation of Laina Raveendran Greene from the company’s board of directors, which was announced on Monday.

For more information on GlobeTel, visit http://www.globetel.net/index.html.

Patrick Barnard is Associate Editor for TMCnet and a columnist covering the telecom industry. To see more of his articles, please visit Patrick Barnard’s columnist page.