AT&T Corp, IBM and Intel have teamed with two venture capitalist firms to launch a new wireless access firm in a bid to create a nationwide WiFi network.

WiFi technology allows users of personal and handheld computers to connect to the Internet at high speed without cables, and has been touted as the next big revenue generator for operators.

The new alliance is designed to ‘stitch’ together mobile broadband hot spots into a first-of-its-kind nationwide network.

The new firm is called Cometa Networks and according to the group, it’s mission will be to deploy more than 20,000 wireless access points by the end of 2004.

Venture capital firms Apax Partners and 3i Group PLC and Intel Capital are to finance the new company – financial details were not disclosed.

IBM is to provide the back office services, and AT&T said its high-speed network will carry the new company’s wireless internet traffic.

Executives claim they will begin offering their service through cellular and wired telephone companies, D.S.L. and cable Internet service providers and other Internet retailers some time in 2003.

Cometa is targeting 50 major urban areas, from Mobile, Alabama, to New York City.

Cometa announced it will sell its service to Internet service providers and telecom carriers and could potentially set up between 25,000 amd 50,000 access points.