Cometa Networks formed to offer national Wi-Fi

NEW YORK -- Technology giants AT&T, Intel and IBM, and global investment concerns Apax Partners and 3i are pooling their collective technologies and capabilities to create a new company, Cometa Networks, that will provide broadband, wholesale, wireless Internet access nationwide.

"Cometa Networks plans to achieve critical economies of scale by building on the retail brands and customer reach of service providers," said Theodore Schell, Cometa Networks chairman and general partner of Apax Partners. "Our goal at Cometa Networks is to provide the quality of service, nationwide footprint and seamless integration into corporate networks that will stand the test of demanding enterprises."

Cometa Networks plans to provide this service to telecommunications companies, Internet service providers (ISPs), cable operators and wireless carriers, who then can offer their customers wireless Internet access, using wireless fidelity (Wi-Fi) technology, also called 802.11. Cometa will also offer wireless Internet access to enterprise customers through the participating carriers.

Cometa said its service will make it possible for users to keep existing sign-on procedures, e-mail addresses, IDs, passwords and payment methods, regardless of whether they are accessing the Internet via an ISP, corporate virtual private network, telecommunications provider or cable operator.

50 U.S. cities

The new company will work with major national and regional retail chains, hotels, universities and real estate firms to deploy the broadband wireless access service in "hot spots" throughout the top 50 U.S. metropolitan areas.

"Wi-Fi will bring distributed computing into the general public environment leading to increased business productivity and new consumer applications," said Cometa Networks CEO Lawrence B. Brilliant. "Mobile professionals want a consistent, integrated solution that makes it easier to access reports, customer information and email using their existing Internet accounts, whether a mile from home or across the country."

Cometa Networks' 802.11 network access is targeted to begin roll out during 2003 in top 50 U.S. urban markets. The company is in talks with customers and additional partners. AT&T plans to provide network infrastructure and management. IBM plans to provide wireless site installations and back-office systems.

"Wi-Fi technology gives mobile workers high-performance productivity tools that help them boost performance and customer service -- whenever and wherever they're working," Brilliant said.

Cometa Networks will have offices in San Francisco and New York. In addition to Schell and Brilliant, the initial board will will include Robin Murray, general partner at 3i. Financial details were not disclosed.

Apax Partners, Inc., one of the world's leading private equity investment groups, manages more than $11 billion on behalf of institutional investors worldwide. Its cross-border teams of more than 170 investment professionals in the US, Europe, Israel and Japan work together to identify the best investment opportunities in the following industry sectors: information technology, telecommunications, health care, media, financial services, and retail/consumer.

Previously with Sprint

Most recently, Schell was senior vice president for strategy and corporate development at Sprint Corporation, reporting to the chairman. At Sprint, he played a key role in developing Sprint's fixed and mobile wireless and Internet strategies and in negotiating numerous partnerships and investments, including Sprint PCS, Sprint's acquisition of MMDS spectrum, Global One (Sprint-France Telecom-Deutsche Telekom partnership), Paranet, Earthlink, eCompanies, Intelig (Brazil's second long distance carrier) and Hybrid Networks.

3i is a leading international venture capital company with U.S. offices in Menlo Park, California, and Waltham, Massachusetts. Operating since 1945, 3i has invested worldwide over $20 billion, including co-investment funds, through its 16-country, 3-continent network of 36 offices. 3i leverages this worldwide presence to add value to its portfolio companies and investment partners. In the United States, 3i concentrates on early and later stage technology investments in companies with the potential to be leaders in their markets. Outside the USA, 3i invests broadly in private equity and venture capital.

In the past three years, 3i has become one of the most venture capital firms in its markets. Recent investments in early stage companies include Bitfone, Knowmadic, Sonim and OmniGuide. Along with these early stage investments, 3i successfully implemented its later stage initiative with the stated goal of placing an equal focus on both early stage start-ups as well as later stage investments. Recent investments include Top Layer and Placeware.