SYDNEY (WiMAX Day). Japanese conglomerate Mitsui will invest between AUD 5 million and AUD 8 million in Unwired Group Limited. The two companies have also undertaken to share information to facilitate their working together on the development of mobile WiMAX and on mobile applications that will be able to be used by internet and mobile phone users on mobile WiMAX and mobile phone networks around the world.

As part of the deal, Mitsui has agreed to invest in secured convertible notes issued by Unwired with a face value of AUD 0.45 and a 5 percent per annum coupon rate. The notes will have a five-year term, and convert 1:1 into ordinary shares. If Unwired and Mitsui agree, Mitsui may subscribe for an additional AUD 3 million of convertible notes on the same terms by 16 December this year.

According to Unwired CEO David Spence, the agreement means Unwired will be at the forefront not only for WiMAX internet access but also potentially with the development of broadband mobile device applications and content services.

“This signals the start of mobile phone and broadband internet network convergence. With mobile WiMAX, chips will become available not only for computers but hand held devices, including mobile phones. Eventually this means that customers will be able to access the internet and make mobile voice calls from a single device over mobile WiMAX networks. We will be working on mobile content with Japan’s largest ‘Sogo Shosha’”, Spence said.

“We believe there is huge potential for mobile WiMAX to become the predominant technology for mobile data and eventually voice. This is an opportunity for us to learn from Unwired, who lead the world in the development of pre-WiMAX wireless broadband, and who also have a clear upgrade path to this global standard”, Shigeru Dohi, General Manager of the Mobile Business Division of Mitsui & Co., Ltd., said.