British telecoms group Daisy Communications has sold its WiMAX spectrum licences to UK Broadband, a subsidiary of Hong Kong-based PCCW Group, Reuters reports. UK Broadband paid GBP12.5 million (USD18.4 million) in cash for the spectrum, which had been held under the Freedom4 (formerly Pipex Wireless) group, while Daisy has also announced that it has divested its loss-making Wi-Fi business to the existing management team for a nominal sum. Daisy said it expects to see annual cash outflow reduced by around GBP800,000 per annum as a result of the WiMAX licence sale, while the closure of the Freedom4 units would save the group around GBP1 million a year. Commenting on the development Matthew Riley, Daisy CEO, said: ‘The WiMAX and Wi-Fi businesses were not core to the Daisy Group, and the disposals mean we can focus on our unified communications strategy, as well as improve cash flow.’
TeleGeography’s 4G Research Service says that UK Broadband, which uses the ‘NOW Wireless’ brand, holds nationwide WiMAX licences which have been amended to include mobile (802.16e) services. The PCCW subsidiary offers wireless broadband connectivity to client groups including local government and the health and education sectors, but does not currently offer WiMAX-based access for individuals.