US-based wireless broadband group NextWave Wireless has warned for a shortage in funding. The company said it needs to raise fresh cash or it may not be able to continue to run the business from the fourth quarter. NextWave finished June with cash of USD 71.1 million, after reporting a net loss of USD 91.8 million for the second quarter. Along with another USD 26.4 million raised since then, NextWave expects to continue to meet working capital needs into September. However the group has struggled to reach an acceptable deal to sell some of its spectrum holdings and also seen business deteriorate at its equipment business. NextWave now expects the global economic problems to lead to delays in the launch of WiMAX networks, leading to future problems for its WiMAX semiconductor business. NextWave said it's in talks to raise another rUSD 100-200 million, which could fund capital requirements through June 2009. This includes a private placement of USD 100 million in preferred stock, to be complete din September, and USD 100 million in debt financing. It will also work to lower operating costs and sell more spectrum, including its Canadian holdings.

Source:Telecompaper