January 30, 2006
There are roughly 200 million cell phone subscribers in the U.S., and a growing number of these users are turning to their mobile phones at home and work – with many encountering fuzzy reception and weak network signals. Indoor wireless communication has traditionally been spotty at best, and wireless carriers, and venture capitalists alike, are tossing gobs of money at extending networks into buildings.
Earlier this month Spotwave Wireless, a maker of hardware and software that can strengthen wireless signals inside of offices or homes, said it raised a $10 million first tranche of a Series D round led by new investor Motorola Ventures. Spotwave sells software-operated boxes that can be placed inside of workplaces to amplify wireless signals over certain distances. Last week, Motorola itself said it will offer a high-speed indoor access point to mobile operators in direct competition with WiFi.
Now news that RadioFrame Networks, a wireless-network equipment maker with strong industry ties, has raised a $40.8 million Series E round backed in part by wireless luminary Craig McCaw. New investor Samsung participated alongside existing investors COM Investments, Ignition Partners, Ericsson Venture Partners, Innovacom Venture Capital, VantagePoint Venture Partners, and Nextel Data Investments.
Many of RadioFrame's executives and investors are veterans of McCaw Cellular Communications, an originator of commerical mobile phone service in the U.S. during the 1980s. McCaw Cellular was later sold to AT&T Corp. McCaw Cellular's founder, Craig McCaw, leads COM Investments and took part in this latest round of funding for RadioFrame. RadioFrame Chief Executive Jeffrey Brown is a former McCaw Cellular executive, and RadioFrame founder Robert Mechaley is credited with helping build the first seamless wireless network while with McCaw.
Bellevue, Wash.-based RadioFrame sells software-based, radio access network equipment to mobile carriers, which can increase coverage strength in congested areas and indoors. VantagePoint Partner Eric Ver Ploeg said that RadioFrame is able to sell next generation equipment that is "cheaper and more flexible than anything from a standard telecom vendor." He also lauded the company's revenue model, which is based on directly selling to carriers. "You don't have to get too many of them to get large amounts of revenue," Ver Ploeg said.
RadioFrame's customers include Sprint Nextel. Craig McCaw was previously an investor and board member at Nextel Communications, prior to that company's merger with Sprint.
