Comcast Invests in Wi-Fi Equipment Maker
Ottawa-based BelAir Networks has attracted US$20-million
in private equity, including a strategic investment from the venture capital arm of Comcast Corp.,
the largest cableco in the U.S. This is Comcast Interactive's first
Canadian investment. BelAir, which makes wireless gear used to build
hotspots, is no stranger to U.S. telcos being part of
AT&T's bid for the city of Philadelphia's municipal Wi-Fi system.
Earthlink, however, won the contract. Comcast offered little insight
into its Wi-Fi plans other than telling the Ottawa Citizen
that BelAir
is “well positioned to address the needs of multiple
customer segments, including those of the cable market.” Comcast has
made other investments, however, in Wi-Fi security and management
software. You have to think Comcast is looking to BelAir's technology
to protect its
high-speed Internet business. Comcast and Verizon were less than pleased
with Philadelphia's Wi-Fi plans, and lobbied the state legislature to
block the city's plan. If free or cheap municipal Wi-Fi service
is going to become a competitive reality, maybe Comcast and other
cablecos and telcos need to get into the game by offering a service
offering better QoS. Cablecos and telcos could sell Wi-Fi as an add-on
to existing high-speed customers or as a standalone service. As for the
the growth of the Wi-Fi market, In-Stat estimates
that from 2004 through 2009, the market for wireless mesh network
access
points will grow from $33.5 million to $974.3 million.
Aside from Comcast, other investors in BelAir's financing were McLean Watson, T-Mobile Venture Fund, JPMorgan Partners, VenGrowth
Capital Partners Inc. and BDC Venture Capital also participated in
this round.
