Growth in the Newfoundland wireless industry comes from practical applications

Year-over-year growth in the information and communications technologies (ICT) sector is generating jobs, revenue and a renewed sense of hope for Canada’s eastern most province. Last week, the government of Newfoundland and Labrador took advantage of an international conference on wireless technology to showcase some of its achievements in the ICT sector, and to demonstrate how the province’s traditional resource-based industries are actually helping the region to transform into a knowledge-based economy. In the wireless sector, Newfoundland has developed homegrown technologies that enable remote communications and more effective ways to manage fish and wildlife stocks. According to statistics from the provincial department of Industry, Trade and Rural Development, revenue generated from the ICT sector in Newfoundland will reach an estimated $700 million by the end of this year. Of that amount, IT will account for about $150 million with the balance generated through the sale of communications hardware, software and applications. The Wireless Vision Congress marked the Centennial Anniversary of the first transatlantic wireless data transmission by Gugliemo Marconi who formed the company that maintains his name. Despite the drop in air travel this month, the government-sponsored conference still managed to attract delegates from more than 20 countries to explore the role of wireless technologies in providing basic communications to rural and remote communities and its impact on the delivery of education and health care, among other issues. While communications still accounts for only a fraction of the domestic economy, it is a growing sector. "Not long ago, companies asked ‘Where’s Newfoundland?’ " Beaton Tulk, deputy premier and minister responsible for Industry, Trade and Rural Development said during a media briefing last week. "That’s not the case today (and) I think we’re fast becoming recognized as a place where you can do business." The province now counts approximately 200 high-tech companies and employs more than 4,200 people, a 60 per cent increase from 1993. The numbers are still modest, but given that the province only began promoting the industry in 1996, those figures are comparable to where Ottawa was 30 years ago when Terry Matthews and Michael Cowpland launched Mitel Corp. And like Ottawa in the 1970s, Newfoundland lacks readily available capital from which companies can draw. The region is beginning to show signs of a growing angel investor community, but venture capital is almost non-existent in the province. Some of the money used to fund development comes from partnerships with governmental organizations such as the Canadian Centre for Marine Communications. Other programs exist at the provincial level to help in the commercialization of products, for example. Companies use existing sources for funding One such company that has drawn upon both the CCMC and the provincial government is Consilient Technologies Inc. The wireless application service provider landed some funding from the CCMC earlier this year to help it commercialize a new multi-protocol server (RoW, Feb. 19/01). The company has since began working on its wireless rapid application dePloyment middleware platform that will enable quick migration to the wireless environment with single bill functionality. Using the Ardis network, the company offers a national mobile workforce management system to the HVAC industry and other vertical markets over Research in Motion Ltd’s BlackBerry device. The company is in discussions with the country’s other national wireless operators and hopes to announce agreements soon which will add to Consilient’s already national presence. Judy Hearn, marketing manager at Consilient, says billing is going to be a huge problem down the road. "We know the headaches involved in billing and we also know how important it is for the customer to have one bill," she says. Ban on cod fishing helped to diversify economy Many familiar with the growth of the Newfoundland economy over the last several years say that it all started in 1992, when the federal government imposed the moratorium on cod fisheries because of depleted stocks. While this was thought to be the death of the Newfoundland economy, the arrival of Brian Tobin in 1996 and his subsequent successful run at the premier’s office changed all that. Tulk explains that it was at this time that the government began to invest money in this area to promote growth and development of the technology industry. While he would like to see that level of science and technology growth increase dramatically over the coming years, Tulk recognizes that isn’t yet possible. "I doubt that we will ever reach the status" of the wireless and other communications industries in places like Toronto and Ottawa, he said. Success of Newfoundland simple Ironically, one of the driving forces behind technology development in the province has been the need to maintain a healthy fishery. New conservation programs put a limit on how much a fisher could bring in each season. But the traditional way of fishing by instinct couldn’t ensure a full load every time out, says Jim Hall, GM at NorthStar Technical, a maker of fishing net management equipment. "It’s all about responsible fisheries now," he says. Normally, boats trawl for fish four hours at a time. If the net is brought up and it’s only half full or too full, a good chunk of his day is wasted, says Hall. That’s where Northstar’s Net Mind equipment comes in handy. It allows the boat captain to monitor the net angle to ensure it stays open. It also gives the boat an accurate measurement on how close the net is to the seabed. The company’s products use acoustic technology, or sound waves, to produce graphic re-productions of space underneath the boat. A Net Mind system includes at least one hydrophone for sending the sound waves and one sensor which bounces the sound back. An on-board receiver and computer then produce all the graphical representations of what’s taking place under water. Top of the line Net Mind systems with multiple hydrophones and sensors can run as high as $40,000, with a single sensor and hydrophone system priced in the $18,000 range. Hall says that the return on investment can be realized in one season’s fishing because it allows the fisher optimal functionality each time. The fisher also saves on gas and other expenses. Northstar Technical’s biggest contract came when the U.S.-based under water research organization, NOAH, awarded the company a $500,000 contract to outfit its fleet of boats with the Net Mind system. That gave the company some credibility outside of Canada and gave it a big boost in eyes of competitors, Hall says. Key ingredients are there The growth of any industry sector requires certain key drivers. While there are a number of factors contributing to the growth of Newfoundland’s technology industries, a keen entrepreneurial spirit and an abundant supply of qualified workers rank up there as two of the most significant. Future growth of the industry will hinge on attracting a sufficient supply of risk capital to the region and it could be hard to convince venture capitalists from the Silicon Valley and Boston areas that good work is being done in the province. But don’t count the Newfoundlanders out just yet. They have a knack for surviving near economic death experiences.

Growth in the Newfoundland wireless industry comes from practical applications

News | October 2, 2001

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