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GSA VENTURE TARGETS START-UPS

Telecommunications International Magazine.

Article reproduced from Telecommunications International, March 2001, with the kind permission of Horizon House Telecommunications International.

GSA (The Global mobile Suppliers Association) has established a new ventures programme (NVP), which is designed to provide a neutral meeting point for start-up content and application companies.

The GSA hopes that the NVP will create a forum for companies to exchange ideas, promote standardisation, and influence technology and market development - especially in the area of 3G multimedia.

According to the GSA, the forum has been created in recognition that a new group of companies is emerging that will be critical to the future evolution of the wireless network value chain. The GSA says that a new mix of predominately privately-held entrepreneurial start-ups is creating the hardware, software and platforms that wireless service providers will need to deliver current and future internet-based, interactive and mobile commerce applications.

In order to be eligible, prospective member companies must be less than three years old and be involved in the development of wireless data applications, platforms, services and/or content. GSA also says that the start-ups must also be pre-IPO (pre-initial public offering), innovative and potential high-level achievers. At the moment, GSA says that there is no limit to the number of start-ups that can join.

According to Alan Hadden, president for the GSA, the NVP has been designed around the recognition that start-ups (by their very nature) have limited personnel and resources - but despite this, GSA will not fund the start-ups directly. "We are not a venture capitalist, but we will provide an environment where they can get into contact with investors if they appear to warrant it," says Hadden. "And GSA will pay for the cost of setting up future meetings that are scheduled to correspond concurrently with other GSM/3G industry events."

The inaugural meeting of the NVP was held last month at the 3GSM World Congress in Cannes and focussed on the issues of gaining access to the 3G services market. Following Cannes, there will be another three meetings held this year. In addition to the meetings, regular dialogue will be maintained through telephone and internet conferencing to facilitate member work and communications.

Hadden says that the future basis and shape of the NVP is an open question and so the GSA will just wait to see how things will evolve. One constant, though, will be chairman Steve Titch, an industry journalist who is scheduled to chair all future meetings.

"The setting up of the NVP is something which we are very excited about," adds Hadden. "This is the first time that a global set-up for new players has been established by any organisation. We believe that this forum will provide a driving force that will enable start-ups to successfully provide the industry with content and applications that will move people away from 2G to 3G multimedia. And due to the unfamiliar waters of a depressed market and the subsequent pessimism that has engulfed the telecoms industry, we also believe that the NVP will provide a much needed boost to the industry."

GSA (established in 1998) was set up to support GSM suppliers in existing markets and to also promote them in new ones. Another key role now is to promote the evolution of GSM as the platform of delivery for 3G services. GSA membership includes the total supply chain for the wireless industry.

Matthew Secker

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Last updated March 27, 2001
Copyright 2001. All rights reserved. Global mobile Suppliers Association.