YET another resource company has invested in the high-speed digital communications market but this one is not forsaking all else in its rush to go dot com.
Pilbara Mines plans to acquire an initial 80 per cent interest in Request DSL, a digital subscriber line service provider which will offer asynchronous DSL technology to Internet service providers and private homes throughout Australia.
ADSL technology allows high-speed data transmission across traditional copper wire-based networks.
This brings high-bandwidth access to a much broader spectrum of businesses and private homes than would be possible using technologies such as fibre optic cable.
The investment by Pilbara will not alter the intentions as stated in its recent prospectus and no funds raised under the prospectus will be used to fund the new investment.
Instead, Pilbara will complete a placement to cover the cost of the investment after it goes public.
Request will use the funds for product development and strategic alliances.
The transactions are subject to both regulatory and shareholder approval.
Pilbara managing director John Davis said ADSL technology would deliver high-speed Internet access at speeds of up to 1.5 megabits per second – thirty times faster than current analogue modem rates of 56K per second.
ADSL technology involves the installation of equipment at the exchange and a special modem at the customer’s end.
The technology integrates with an existing phone line and provides more consistent performance than pay TV cable modems which are only available in Sydney and Melbourne to Foxtel customers.
“Request DSL will have the advantage of not being connected with, or owned by, an existing ISP, which will give it a significant edge,” Mr Davis said.
Pilbara will also continue with its mineral projects including the Teutonic Bore polymetallic project which is currently subject to a pre-feasibility study.
